Price Hikes for Congestion Zone

Transport for London (TfL) is seeking views on a number of changes to the Congestion Charge to help keep London moving, encourage the uptake of electric vehicles and promote sustainable travel across the capital. But the charge could be increased.

TfL say that charges could rise to £18 from 2026 and then increase each year.

Under the new proposals, launched in a public consultation until 4 August, Tfl say they intend to work to continue managing traffic effectively in central London, and contribute to the Mayor’s long-term vision for a cleaner, greener London, through increased uptake in electric vehicles and more journeys taken by public transport.

They say that every year, congestion costs London billions of pounds – in 2024 alone vehicle congestion cost the capital £3.85 billion, averaging £942 per driver**. This heavily impacts businesses, bus customers and other essential services and that the congestion charge is in place to manage traffic and congestion in the heart of London.  Now TfL is consulting on changes to the Congestion Charging scheme to ensure that it remains efficient at reducing congestion for years to come, so that central London can continue to thrive.  But what could the changes mean for you?

Proposed changes 

• New Cleaner Vehicle Discount proposed in new public consultation incentivising the use of cleanest possible vehicles while managing traffic and congestion
• Proposal to set the daily charge at £18 from January 2026 to ensure it remains effective – the first increase since 2020
• Analysis shows that there will be more than 2,200 additional vehicles on an average weekday without these proposed changes*
• TfL is proposing that, from March 2027, and for new applicants only, the Residents’ discount will be available only for electric vehicles
• Proposal to move to incremental annual increases to the Congestion Charge as with public passenger transport fares

On 2 January, the daily £15 fee for drivers of vehicles in central London will increase, the first such rise since June 2020 when the charge jumped 30% from £11.50.

If the charge is not paid within 48 hours, drivers face a penalty of £180, reduced to £90 if paid within 14 days. It operates between 07:00 and 18:00 on weekdays and 12:00 and 18:00 on weekends.

Drivers of electric cars, who currently travel free in the zone, were expecting to start paying the full charge from December but will now receive a 25% discount provided they are registered for auto pay. HGVs and vans will get a 50% discount.

The proposed new discount will be introduced in two phases: 

From 2 January 2026:

• 50 per cent discount for electric vans, Heavy Goods Vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay
• 25 per cent discount for electric cars registered for Auto Pay

From 4 March 2030:

• 25 per cent discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay
• 12.5 per cent discount for electric cars registered for Auto Pay

To make it easier for drivers to access the discount, it is proposed that it will be applied automatically from DVLA data, rather than having to separately register and prove a vehicle meets the standards. If the changes go ahead, drivers with eligible vehicles will simply need to sign up to Auto Pay to receive the discount.

The Congestion Charging Scheme is constantly kept under review and the charge level has been unchanged since 2020.

To ensure it remains effective, it is proposed that the charge level is increased from £15 to £18 from 2 January 2026 – the first increase in five years. Central London is already one of the world’s best-connected places, helping to support sustainable travel; zone one alone has 71 train stations and with 700 bus routes serving the London area, people living, working and visiting in the zone have many sustainable alternatives to driving. London's Cycleways total network is now more than 400km, quadrupling in size from just 90km in 2016.

From 1 March 2027, it is proposed that eligible new applicants for the 90 per cent Residents’ discount will only be able to receive the discount for an electric vehicle. This will help to incentivise the shift to the cleanest possible vehicles and give people moving into the zone time to plan ahead. Those who are already registered for the discount ahead of this date will not see any changes, reflecting that they might be reliant on their current form of transport.

TfL is also consulting on some proposed changes to the Mayor’s road user charging guidance, which would allow the Congestion Charge to be increased each year in line with Tube fares, inflation plus 1 per cent or a lower amount. These increases would only apply to the Congestion Charge and not the ULEZ. The new proposed procedure would create consistency with the approach that applies when public passenger transport fares are set and would ensure that public transport does not become proportionately more expensive than driving in central London.

Seb Dance, Deputy Mayor for Transport, said: "Keeping London moving by reducing congestion is vital for our city and for our economy.

"The congestion charge has been a huge success since its introduction, but we must ensure it is fit for purpose.

"Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

"At the same time we must support Londoners and businesses to use greener and more sustainable travel. That’s why I’m pleased we’re proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.

"We encourage everyone to have their say and respond to the public consultation."

Christina Calderato, TfL’s Director of Strategy, said: "Since it was introduced in 2003, the Congestion Charge has been hugely successful in supporting the move to more walking, cycling and public transport and encouraging the uptake of the cleanest vehicles. With these proposed changes we want to make sure it continues to be effective in managing traffic and congestion in central London while providing ongoing support to those who need to drive in the zone to make the switch to an electric vehicle. I would encourage people to respond to the consultation to help shape our plans."

Oliver Lord, UK Head of Clean Cities Campaign, said: "We’ve record numbers of polluting diesel vans in the UK so I’m thrilled the Mayor is helping to reward businesses that invest in greener fleets. By prioritising electric and pedal powered freight, we will all benefit from cleaner air and quieter streets.

"There’s no use having a Congestion Charge that nobody pays so I think today’s proposals strike a fair balance between its core aims around traffic and congestion, whilst also advancing our environmental goals."

Izzy Romilly, Sustainable Transport Campaigner at climate charity Possible, said: "To tackle the climate crisis, health inequalities, and air pollution, we have to tackle London’s high levels of traffic.

"We’ve got to look for the best and fairest ways to discourage unnecessary car trips, while also making sure that people who need to drive can switch to fully electric vehicles.

"Getting the balance right on the congestion charge discount for EVs means incentivising the switch to electric, while discouraging car journeys that could be taken in a different way.

"The bigger picture is that we need to make space for bus lanes, safe cycle paths, and walkable streets so that we can bring a lower traffic future to life - tackling air pollution, protecting the climate and creating places that are better to live in."

Sophie O'Connell, Senior policy adviser at the Green Alliance, said: "It’s great to see London continuing its leadership in encouraging the switch to cleaner vehicles through the proposed changes to the Clean Vehicle Discount. With larger incentives for electric vans and delivery vehicles, which have further to go in decarbonising, these changes target the right areas. The new measures send a clear signal: driving a polluting vehicle through central London should not be cheaper than taking public transport, making the cleaner choice the obvious one while supporting both public health and the environment."