The Mayor of London has written to Volkswagen urging it to "fully compensate" residents affected by the emissions scandal.
Sadiq Khan wants the firm to reimburse Transport for London £2.5 million in lost congestion charge revenue.
He says he will use the money – for vehicles that were unknown to be contributing to the capital’s pollution at the time – to fund a new schools air quality programme.
It emerged last year that 11 million Volkswagen-built cars worldwide were fitted with software which detected when the vehicles were undergoing official emissions testing and switched the engines to a cleaner mode.
It is estimated the equivalent of up to 9,400 deaths occur each year in London because of illnesses caused by long-term exposure to air pollution, with 448 schools in the capital in areas exceeding legal air quality levels.