At a glance
• From January 2 2026, the London Congestion Charge will rise from £15 to £18, with subsequent annual increases linked to Tube fare rises
• The current 100% exemption for electric vehicles will be cut to 50% for electric vans/lorries and 25% for electric cars
• From March 2027, new applicants for the 90% residents’ discount must drive an electric vehicle
London’s Congestion Charge will increase from £15 to £18 in January, mayor Sir Sadiq Khan has confirmed.
The higher charge will come into force on January 2 next year – with annual increases in line with the rise in Tube fares coming in each subsequent year.
This is to ensure that public transport does not become proportionately more expensive than driving in central London.
But the mayor is also pressing ahead with plans to cut the 100 per cent exemption currently enjoyed by drivers of electric vehicles, despite widespread calls for it to be retained.
This will reduce to a 50 per cent discount for electric vans and lorries and a 25 per cent discount for electric cars from January 2.
However drivers only qualify for the discount if they sign up to Transport for London’s AutoPay system, which automatically deducts the charge from their bank account.
The discount will be further reduced to 25 per cent for electric vans and lorries, and 12.5 per cent for electric cars, from March 2030.
Without a change in the “cleaner vehicle discount” rules, TfL estimates that an additional 2,200 vehicles would enter central London on weekdays due to the growth in popularity of electric vehicles.
Sir Sadiq said: “Keeping London moving by reducing congestion is vital for our city and for our economy.
“While the Congestion Charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.
“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, as we work to build a greener and better London for everyone.”
See also: Business and green groups criticise 'backward step' for London as Mayor ploughs on with 'EV tax'
Since the cleaner vehicle discount was first introduced in 2019, the number of electric vehicles registered has risen almost sixfold - from around 20,000 to more than 116,000 earlier this year.
The mayor is also limiting the eligibility to discounts for residents who live within the C-charge zone.
The residents’ discount, which gives 90 per cent off the daily charge, will only be available from March 2027 to new applicants if they drive an electric vehicle.
However, these changes will not affect people who already live in the area. They will continue to qualify for the residents’ discount regardless of which type of vehicle they drive.
The changes, first proposed in May, will go ahead after the mayor analysed the responses to a TfL consultation.
Low-income and disabled Londoners who live in the zone will be able to continue to receive a 100 per cent residents’ exemption until 2030, regardless of the type of vehicle.
There will also be a new 100 per cent discount for “back to base” electric car club vehicles – those that are hired from and returned to the same marked parking space within the zone.
The Congestion Charge was first introduced by the then mayor Ken Livingstone in February 2003, when it cost £5 a day.
The new £18 levy is the first increase since 2020 and will come into force in January next year.
About 41,000 drivers currently pay the charge each day, while 2,500 penalty tickets, costing £180, are issued to drivers who fail to pay.
Many foreign countries refuse to pay the C-charge for their diplomatic vehicles – leaving TfL with a debt of about £165 million.
The C-charge is one of several currently levied by the mayor and TfL. The others are the Ulez, which is levied on more polluting vehicles across Greater London at a rate of £12.50 a day, and the tolls on the Silvertown and Blackwall tunnels, which range from £1.50 to £4 per trip.
The C-charge is currently £15 if you pay in advance or on the day or travel, or £17.50 by midnight of the third day after travel. The £17.50 levy will increase to £21.
The charge increased from £11.50 to £15 in 2020. It had risen from £10 to £11.50 in 2014.
Christina Calderato, TfL’s director of strategy, said: “If we want to ensure that London remains a thriving city for everyone to enjoy, then it’s vital that traffic and congestion is kept under control and managed effectively.
“The changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport.”
