From 5 January 2026, new regulations will significantly change how street and road works are charged and penalised in England. The updates will increase financial penalties, tighten rules around overruns, and place new requirements on how lane rental income is spent.
For utilities, contractors, and highway authorities, the message is clear: compliance errors and delays will become more expensive, and expectations around planning and delivery will rise.
This article explains what is changing, why it matters, and how organisations can prepare.
Background: How Street Works Are Regulated Today
Street and road works in England are governed by the New Roads and Street Works Act 1991 (NRSWA), supported by later regulations covering permits, fixed penalties, overrun charges and lane rental schemes.
These controls are designed to:
- Manage disruption on traffic-sensitive roads
- Coordinate work between promoters
- Encourage accurate planning and timely completion
The Street and Road Works (Charges and Penalties) (Amendments) (England) Regulations 2025 build on that framework. While the structure remains familiar, the new measures strengthen enforcement and increase financial consequences.
When Do the Changes Take Effect?
The regulations were made in 2025 and come into force on 5 January 2026
From that date, the revised penalty levels and charging rules will apply to works in scope.
Key Changes Coming in January 2026
Fixed Penalty Notices Will Double.
From January 2026, Fixed Penalty Notices (FPNs) issued for street works offences will double in value. The updated penalty levels are:
- Lower-level penalties: £80 increasing to £160
- Standard penalties: £120 increasing to £240
- Higher-level penalties: £300 increasing to £600
- Maximum Fixed Penalty Notice: £500 increasing to £1,000
While the regulations do not introduce new offences, the higher penalty levels significantly increase the financial impact of existing ones. Issues such as late or missing notices, breaches of permit conditions and wider non-compliance with scheme requirements will therefore carry greater cost exposure, particularly for organisations managing large volumes of street works.
Overrun Charges Will Apply to All Days
Under existing rules, overrun charges are typically applied only to working days. This meant weekends and bank holidays were often excluded if work ran beyond their agreed end date.
From January 2026:
- Overrun charges can be applied to any day of overrun
- This includes weekends and bank holidays
- The change removes the distinction between “working” and non-working days
The effect is to close a long-recognised loophole and reinforce the importance of realistic programmes and timely completion.
Lane Rental Surplus Must Be Spent More Transparently
Lane Rental Surplus Must Be Spent More Transparently
For highway authorities operating lane rental schemes, the regulations introduce a clearer obligation regarding the use of surplus income.
At least 50% of the net surplus (after scheme operating costs) must now be applied to:
- Reducing disruption caused by street works, and
- Highway maintenance, such as resurfacing and pothole repairs
This change ensures lane rental charges deliver visible benefits to road users and help address long-running concerns about road conditions.
Supporting Changes to Systems and Guidance
Alongside the regulatory amendments, the Department for Transport is:
- Updating Street Manager, including improvements linked to lane rental streets
- Updating the Statutory Code of Practice to support the new enforcement approach
These changes are intended to improve coordination, data quality and consistency across inspections, charges and penalties.
Why the Government Is Strengthening Street Works Rules
The changes are intended to address long-standing issues with how street and road works are planned, delivered and enforced. The focus is on reducing disruption, improving compliance and ensuring road users see clearer benefits.
- Reducing disruption: Late-running works are a major cause of congestion. Allowing overrun charges to apply to every day beyond the agreed end date removes incentives to delay completion into weekends or bank holidays and encourages more realistic scheduling.
- Improving compliance: Doubling Fixed Penalty Notices increases the cost of poor administration and permits breaches. This places greater emphasis on submitting accurate notices, complying with permit conditions and completing works within agreed timescales.
- Supporting road maintenance: Requiring a share of lane rental surplus to be reinvested in disruption reduction and highway maintenance helps address visible issues such as resurfacing needs and pothole repairs, ensuring road users benefit directly.
Who Will Be Most Affected?
The changes will be most felt by organisations that:
- Carry out works on traffic-sensitive streets
- Manage high volumes of notices or permits
- Are subject to lane rental schemes
- Frequently work to tight programmes
Utilities, contractors, and works promoters should expect greater scrutiny and higher costs where planning or delivery falls short.
Managing the 2026 Changes with Depotnet’s Street Manager
With higher penalties and overrun charges applying to every day of delay, having clear visibility and real-time control over permits will become increasingly important from 2026.
Depotnet’s Street Manager feature integrates directly with the Department for Transport’s Street Manager system, enabling organisations to apply for, track, and manage permits in real time from a single platform.
Key capabilities that align with the 2026 regulatory changes include:
- Total compliance visibility: Dashboards and reports provide a clear view of permit status at every stage, helping teams stay audit-ready and demonstrate compliance when inspections or enforcement action occur
- Live operational control: Real-time updates from field to office enable quicker action on starts, stops and permit changes, helping prevent overruns and reduce exposure to Section 74 charges
- FPN and overrun handling: Fixed Penalty Notices, inspections and overrun warnings can be tracked and managed directly against linked permit records, supporting faster responses as penalties increase
- Unified permit management: Permits can be created, managed and registered from application through to completion, with every update synchronised, auditable and aligned with DfT Street Manager requirements
As enforcement tightens and financial consequences rise, having a consolidated view of permits, timings and compliance activity can help organisations manage risk more effectively and avoid avoidable penalties under the 2026 rules.
Street Works Charges and Penalties 2026 FAQs
The changes coming into force in January 2026 introduce higher penalties, broader overrun charging and clearer rules around lane rental income. The FAQs below explain how the updated street works charges and penalties operate in practice, who they apply to, and what organisations carrying out works on England’s roads need to understand as enforcement tightens.


