London’s Congestion Charge is about to see its biggest shake-up in years, with Transport for London (TfL) announcing a 20% increase in the daily fee and major changes for electric vehicle (EV) drivers. Here’s what you need to know about the new rules, why they’re being introduced, and what they could mean for the capital’s roads and air quality.
What’s changing with London’s Congestion Charge?
Daily charge increase
Starting January 2, 2026, the Congestion Charge for driving in central London will rise from £15 to £18 per day. This is the first increase since June 2020, when the fee jumped from £11.50 to £15 – a move aimed at managing traffic during the pandemic.
New rules for electric vehicles
Current policy: EVs currently pay nothing to enter the Congestion Charge zone.
From January 2026: EV owners registered for auto pay will pay £13.50 per day – a 25% discount on the new rate.
Heavy Goods Vehicles (HGVs): HGVs, light quadricycles, and heavy quadricycles will pay £9 per day, a 50% discount.
Future reductions: By March 2030, these discounts will shrink further: EVs will get a 25% discount, and HGVs just 12.5%.
Penalties for non-payment
If drivers fail to pay the fee within 48 hours, they’ll face a penalty of £180, which is reduced to £90 if paid within 14 days.
Why is the Congestion Charge changing?
TfL and City Hall argue that the increase and discount changes are necessary to keep congestion and pollution under control. Without the adjustments, they estimate an extra 2,200 vehicles could enter central London every weekday, worsening traffic and undermining the purpose of the charge.
TfL is also considering linking future annual increases to public transport fare inflation, which typically rises with inflation rates.
What about the Residents’ Discount?
Current Policy: Residents with non-electric cars get a 90% discount.
From March 2027: New applicants who don’t drive EVs will no longer be eligible for the discount. Existing residents who already have the discount will keep it.
Is the ULEZ affected?
No, the Ultra Low Emission Zone (ULEZ) is not impacted by these changes. However, drivers of older, more polluting vehicles already pay £12.50 per day to travel anywhere in the ULEZ, which now covers all London boroughs. Entering central London with such a vehicle will cost a total of £30.50 per day when combining the Congestion Charge and ULEZ fees.
Some environmental groups and analysts warn that removing or reducing the EV discount could slow the city’s progress on air quality. A recent report by Stonehaven Global cautioned that ending the EV exemption could reverse years of improvements and lead to an 11% rise in nitrogen oxides in central London.
While the new rules will mean higher costs for many drivers – including those with electric vehicles – TfL believes these changes are essential for keeping the city moving and the air clean.