Transport for London has implemented a 20 per cent increase in the Congestion Charge to £18 per day starting 2 January 2026, introducing tiered discounts for cleaner vehicles amid efforts to reduce traffic congestion in central London.
Drivers entering the London Congestion Charge Zone in central London now face a daily fee of £18 from today, up from £15, as announced by Transport for London to curb rising vehicle numbers and maintain traffic flow benefits.
Congestion Charge Increase Takes Effect
The daily Congestion Charge has risen to £18 for vehicles driving within the Congestion Charging Zone during charging hours, which run from 7am to 6pm on weekdays and 12pm to 6pm on weekends, according to Transport for London. This marks the first adjustment since 2020 and represents a £3 or 20 per cent increase, as reported by Time Out. Residents eligible for the Residents’ Discount continue to pay £1.80 daily, a 90 per cent reduction on the full charge, per Transport for London details.
As reported by Transport for London, the changes stem from projections that without intervention, more than 2,000 additional vehicles could enter the zone on an average weekday, exacerbating queues, delays, and impacts on the economy, local businesses, bus services, and other essentials.
Background and Policy Developments
The Congestion Charge, operational since 2003, aims to deter unnecessary car journeys in central London and fund transport improvements, with Transport for London overseeing its administration and periodic adjustments. A public consultation on these changes ran from 27 May 2025 to 11 August 2025, informing the final implementation, according to Transport for London.
New Discounts for Electric Vehicles
From 2 January 2026, a tiered Cleaner Vehicle Discount applies to eligible zero-emission vehicles registered for Auto Pay, reducing the charge to £13.50 for electric cars and £9 for electric vans, heavy goods vehicles, and quadricycles, Transport for London states. Vehicles not on Auto Pay forfeit these discounts and pay the full £18, as outlined in the official scheme updates.
Future Adjustments and Rationale
Revised Mayor’s guidance introduces a streamlined process for routine changes to London’s road user charging schemes, bypassing public consultation in some cases, allowing potential annual increases aligned with Tube fares, inflation plus 1 per cent, or less, subject to Transport for London and Mayoral decisions, per Transport for London. These measures ensure the charge remains proportional to public transport costs while sustaining congestion reduction, Transport for London explains. Time Out confirms the hike’s timing and scale, noting its role in addressing post-2020 traffic pressures.
Transport for London has enacted the Congestion Charge increase to £18 daily alongside cleaner vehicle incentives, following consultation and policy revisions to preserve the scheme’s effectiveness in managing central London traffic.
