Charging companies for roadworks - lane rental scheme

This guidance explains how the North Yorkshire Lane Rental Scheme affects your works, including how lane rental charges interact with other fees, charges and enforcement.

The scheme applies to works on designated traffic-sensitive routes and operates alongside the North Yorkshire Permit Scheme.

Where the scheme applies

Lane rental charges only apply on:

•    designated lane rental streets
•    during defined traffic-sensitive (chargeable) periods
•    approximately 6.5% of the highway network, focusing on key routes

You must check whether your works fall within the scheme when planning your programme.

When lane rental charges apply

Lane rental charges are applied where:

• works occupy the highway on a lane rental street
• the activity takes place during traffic-sensitive times
• the works cause traffic disruption (such as lane closures or reduced carriageway width)

Charge levels

• Charges are based on the level of disruption.
• Maximum charge: up to £2,500 per day.
• Charges apply to all promoters, including utilities, developers and highway authority works.

Key principle

The greater the disruption (location plus timing plus duration), the higher the cost.

How to avoid or reduce lane rental charges

You are expected to plan works to minimise disruption.

Do:

• work outside peak traffic periods wherever possible
• use overnight, weekend or off-peak working
• minimise the duration of works on site
• avoid or reduce lane closures
• use efficient or innovative working methods
• coordinate with other promoters to reduce repeat occupation
• keep sites continuously active

Avoid:

• peak-time working on lane rental streets
• leaving sites inactive or unattended
• unnecessary traffic management
• overrunning agreed durations

Exemptions and allowances

Limited exemptions apply:

• emergency works are exempt from lane rental charges for the first 48 hours only
• immediate safety works may qualify for exemption
• other discounts or reductions may apply depending on methodology and circumstances

Once exemption periods end, lane rental charges will apply if works continue during chargeable times.

Fees, charges and enforcement – important information

Lane rental charges are additional to other statutory fees and enforcement mechanisms.

Permit fees

Permit fees still apply in line with the North Yorkshire Permit Scheme:

• where lane rental charges do not apply, a permit fee will apply
• where lane rental charges apply, permit fees do not apply for the same activity

You will never be charged both a permit fee and lane rental for the same occupation, but one or the other will always apply.

Section 50 (S50) and road closure fees

The following charges still apply in addition to any lane rental charges:

• Section 50 licence fees
• temporary traffic regulation order (TTRO) / TTRN / road closure fees
• any associated administration or inspection charges

Section 74 overrun charges

Lane rental charges are separate from Section 74. If works exceed the agreed duration:

• lane rental charges will continue to accrue
• Section 74 overrun charges may also be applied

Accurate duration estimates and proactive management are essential.

Fixed Penalty Notices (FPNs)

Lane rental does not replace enforcement.

FPNs may still be issued for non-compliance, including but not limited to:

• working without a permit
• breaching permit conditions
• failing to submit permit variations
• unauthorised overruns
• non-compliant traffic management

FPNs, permit fees, Section 74 charges, and lane rental charges are all separate mechanisms and may apply concurrently where appropriate.

Permit applications

There is no separate application for lane rental. You must submit permit applications as usual.

Clearly include:

• accurate dates and duration
• traffic management proposals
• measures to minimise disruption

The system will automatically identify whether lane rental or permit fees apply.

Coordination expectations

You are expected to:

• engage in early planning and coordination
• identify opportunities for joint working
• programme works to minimise network impact

Failure to coordinate may result in higher costs, reduced flexibility or enforcement action.

The scheme is designed to change behaviour, not penalise delivery:

• working off-peak means lower or no lane rental
• finishing quicker means reduced exposure
• poor planning means higher costs and potential enforcement

By planning efficiently and minimising time on the highway, you can control costs, remain compliant and reduce disruption.

This guidance is for statutory undertakers carrying out works under the New Roads and Street Works Act on the North Yorkshire highway network.

The North Yorkshire Lane Rental Scheme applies to works on designated traffic sensitive streets at traffic sensitive times and operates alongside the North Yorkshire Permit Scheme.

Where the scheme applies

Lane rental applies only where all of the following are true:

• the street is designated as a lane rental street
• works take place during chargeable (traffic sensitive) periods
• the works occupy the highway and impact traffic flow

Only a small proportion of the network (around 6.5%) is included, focusing on the busiest and most critical routes.

You are expected to check lane rental status at the planning stage, not after works have started.

When charges apply

Lane rental charges apply where works:

• are carried out on a lane rental street
• take place during traffic sensitive times
• cause disruption (such as lane closures, reduced carriageway width or temporary signals)

Charge levels

• Charges are applied daily.
• Based on the level of disruption.
• Maximum charge is up to £2,500 per day.
• Charges apply to utility works in the same way as highway authority works.

Core principle for utilities

Busy road plus busy time plus longer duration equals higher cost.

Planning expectations for utility works

Utility companies are expected to demonstrate active disruption management.

You should:

• programme works outside peak traffic periods wherever practicable
• use overnight, weekend or off peak working on lane rental streets
• minimise site duration and avoid idle or unattended works
• reduce or eliminate lane closures where possible
• use accelerated or innovative techniques
• coordinate with other undertakers to avoid repeat occupation
• submit permit variations promptly if circumstances change

Failure to plan effectively may result in higher charges and enforcement action.

Emergency and urgent works

Emergency works are exempt from lane rental charges for the first 48 hours only.

After 48 hours, lane rental charges will apply if works continue during chargeable periods.

Utilities must still: 

• submit the appropriate permit
• minimise duration and disruption
• move to off peak working as soon as reasonably practicable

Fees, charges and enforcement

Permit fees versus lane rental

Where lane rental charges apply, permit fees do not apply for the same activity.

Where lane rental charges do not apply, a permit fee will apply.

You will not be charged both for the same occupation, but one or the other will always apply.

Section 50 and road closure charges

The following still apply in addition to lane rental (where relevant):

• Section 50 licence fees (for non statutory works)
• Temporary Traffic Regulation Orders (TTROs) / road closure fees
• Associated administration and inspection charges

Section 74 overrun charges

Lane rental does not replace Section 74. If works exceed the agreed duration:

• lane rental charges will continue to accrue
• Section 74 overrun charges may also be applied

Utilities are expected to provide realistic durations and actively manage progress.

Fixed Penalty Notices (FPNs)

Lane rental does not remove enforcement powers. FPNs may be issued for:

• working without a permit
• breaching permit conditions
• failing to apply for or approve variations
• unauthorised overruns
• non-compliant traffic management
• failure to follow agreed working hours

FPNs, Section 74 charges, permit fees, and lane rental charges are separate mechanisms and may apply concurrently.

Permit applications and variations

There is no separate lane rental application. Utility companies must apply through the Permit Scheme as normal.

Include accurate:

• dates and durations
• traffic management details
• working hours
• disruption mitigation measures

Submit permit variations promptly where works change

The system will automatically identify whether lane rental or permit fees apply.

Coordination and engagement

Utilities are expected to:

• engage in forward planning and coordination
• attend coordination meetings when required
• share programmes to avoid conflict
• support joint working where feasible

Poor coordination may result in reduced permit flexibility, higher costs or enforcement action.

Key message for utility companies

• Plan early.
• Work off peak where possible.
• Finish quicker.
• Keep sites active and compliant.

The Lane Rental Scheme is intended to change behaviour, not penalise utilities that plan and deliver works efficiently.