London confirms changes to the Congestion Charge

London will introduce a revised Congestion Charge structure from January 2026, raising the daily fee from £15 to £18. EVs will no longer be exempt, but are eligible for a discount of up to 50 per cent - at least until March 2030.

London cars congestion unsplash michael fousert — Image: Unsplash/Michael Fousert

Transport for London (TfL) and the Mayor of London have confirmed a tiered discount system that replaces the Cleaner Vehicle Discount introduced in 2019. From 2 January 2026, the daily charge will rise from £15 to £18, while electric vans, HGVs and quadricycles registered for Auto Pay will receive a 50 per cent discount. Electric cars, including Private Hire Vehicles, will receive a 25 per cent discount. A second phase from 4 March 2030 will adjust these to 25 per cent and 12.5 per cent, respectively.

All these changes were first announced in May. But they are only now official.

The charge applies in areas such as Soho, Mayfair, Piccadilly Circus, Covent Garden, Westminster and Waterloo Station. The name “Congestion Charge” was chosen because it is intended to prevent congestion and, therefore, emissions. The high amount is supposed to incentivise people to switch to public transport.

EVs are no longer exempt from the charge because, even though they are locally emission-free, they still contribute to traffic. And according to TfL, EV registrations in the zone have increased from 20,000 in 2019 to more than 116,000 in 2025.

The authority estimates that without the new structure, “there could be more than 2,000 additional vehicles driving during operating hours in the zone on an average weekday”, reducing the effectiveness of the charge. Sadiq Khan, Mayor of London, said: “Keeping London moving by reducing congestion is vital for our city and for our economy. We must support Londoners and businesses to use more sustainable travel, so I’m pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles.”

Further discounts available

The Residents’ Discount will be reshaped to support long-term EV uptake. Those already registered before 1 March 2027 will retain their 90 per cent discount regardless of vehicle type, while new applicants after that date will only receive the discount for EVs. Low-income and disabled residents receiving certain benefits will be able to apply until March 2030 without needing an electric vehicle.

TfL will also introduce a 100 per cent discount for “back to base” electric car-club vehicles hired and returned within the zone, intended to broaden access to EVs for essential journeys.

Christina Calderato, TfL’s Director of Strategy, said: “The changes to the Congestion Charging scheme play a key role in allowing us to keep traffic and congestion under control, while enabling drivers, businesses and other organisations to continue transitioning to cleaner vehicles.”

Further procedural updates will allow future charge adjustments to align with Tube fare changes without consultation, ensuring that public transport does not become more expensive relative to driving. The measures form part of London’s wider transition to low-emission mobility.

tfl.gov.uk (changes), tfl.gov.uk (statement)