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TfL to increase central London Congestion Charge by 20%

Transport for London wants to increase the Congestion Charge for driving in central London to £18 from January 2026, it has been announced today.

The capital’s transport authority is running a public consultation through the summer which includes proposals for a new Cleaner Vehicle Discount to incentivise the uptake of what they call “the cleanest possible vehicles”.

The 20% increase in the Congestion Charge, from the current £15, is the first since 2020. TfL wants then to increase the charge annually, in line with inflation, in the same way that public transport fares increase. The increase would apply to the Congestion Charge, but not ULEZ, TfL says.

TfL says that research shows that London could see an extra 2,200 vehicles on an average weekday without these proposed changes.

TfL also wants to remove its current residents’ discount for new applicants, making it available only for owners of electric vehicles.

TfL claims that in 2024, vehicle congestion cost the capital £3.85billion. “This heavily impacts businesses, bus customers and other essential services,” they say.

The proposed changes “will 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.

“Achieving this long-term vision will require cutting congestion further and a greater shift away from petrol and diesel vehicles towards walking, cycling and public transport. It will also require, for those journeys that are taken by car or van, increased adoption of electric vehicles.”

The proposed new discount will be introduced in two phases:

From January 2 2026: 50% discount for electric vans, Heavy Goods Vehicles, light quadricycles and heavy quadricycles registered for Auto Pay. 25% discount for electric cars registered for Auto Pay.

From March 4 2030: 25% discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay. 12.5% 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,” TfL says. “If the changes go ahead, drivers with eligible vehicles will simply need to sign up to Auto Pay to receive the discount.”

TfL argues that the Congestion Charge is justified because “people living, working and visiting in the zone have many sustainable alternatives to driving”, with 71 train stations and 700 bus routes serving Zone 1 area.

‘Huge success’: deputy mayor for transport Seb Dance says he must ensure the C-Zone ‘is fit for purpose’

“When the Congestion Charge was introduced in 2003, there was a 30% reduction in congestion within the zone and a 15% reduction in circulating traffic in the first year,” TfL said today in a statement.

“It also boosted bus travel by 33% and contributed to a 10% shift in people using public transport or active travel. Analysis shows there would have been 3million additional journeys by car across London in 2019 without the changes TfL has introduced to encourage more sustainable travel patterns over the last couple of decades, of which the Congestion Charge was a critical first step.”

Deputy mayor for transport Seb Dance 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.”

The public consultation, which can be found by clicking here, is open until August 4.

Oliver Lord, the head of the 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, while also advancing our environmental goals.”


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