The mayor of London, Ken Livingstone, said the strike would cost the capital's economy at least £60m, with businesses paralysed by the dispute.
London Underground (LU) managers admitted that no trains would run in the normally busy rush hours because of the 24-hour walk-out by members of the Rail Maritime and Transport Union (RMT) and Aslef. Just 15 tube drivers reported in for work out of the usual 600 or so normally on duty.
The action is scheduled to end at 8pm tonight but managers admitted a normal service would probably not be in service until tomorrow morning.
Picket lines were mounted outside tube stations across London by workers protesting at an imposed 3% pay rise. Police were called to Edgware Road tube station when managers complained about "aggressive picketing".
The roads into the capital were extremely busy and buses were packed, although many commuters abandoned queues and walked to work. A normal weekday bus service was operating and passengers were asked to be patient and allow extra time for their journeys.
Mr Livingstone told Radio 4's Today programme: "This is an absolute disgrace. This is a completely unnecessary strike [...] The trade unions were prepared to go to arbitration, it's the management backed by the government refusing to go."
The mayor said that responsibility for negotiating and settlements would pass to him next year, and he would seek a three to four year pay deal. "If you have got a management that won't negotiate the only thing a workforce can then do is strike", he said.
LU's director of human resources, Bob Mason, told BBC Radio 4: "The mayor has made various statements, none of which I have found particularly helpful."
Unions blame tube bosses
The RMT general secretary, Bob Crow, and the Aslef leader, Mick Rix, joined pickets in an early morning demonstration and made it clear they are expecting solid support for the strike.
Services ground to a halt within a few hours of the stoppage at 8pm last night and are not expected to return to normal until tomorrow morning.
The two union leaders wrote yesterday to the conciliation service Acas asking it to "urgently investigate" the possibility of arbitration to settle the dispute.
However, LU countered that it had been to Acas on three separate occasions and insisted it had no more money to offer the workers.
Mr Rix and Mr Crow joined the picket line at Golders Green tube station in north London.
Mr Crow said: "I absolutely 100% regret what is happening to the travelling public but I have to say that the blame for this dispute lies fairly and squarely on LU's doorstep.
"I believe that we are public servants and at the end of the day we will be serving the travelling public for the rest of the year. We hope that this strike is the last one and that LU see sense and go to see an independent referee along with us."
Drivers complain at conditions
Northern line driver Gerard Vickers, 43, an RMT member, said he was currently paid around £30,000 a year - this would rise to £31,274 from November.
He said: "The 3% offer is not enough when you put it into the context of the conditions of service. We work most bank holidays, weekends and extremely unsocial hours in a dirty and hostile environment. This package has been imposed upon us."
Alistair Reay, 36, Aslef's branch secretary for East Finchley and Golders Green and a tube driver said: "This is not just about money, it is about conditions of service and harassment of Aslef representatives by management. We have been forced to go on strike by management and they won't go to arbitration so we have been left with no choice."
Howard Collins, LU's service delivery manager, said: "We are disappointed for our customers that we cannot run any trains.
"Staff have been put under enormous pressure by the unions, with heavy picketing at many stations and depots. Trains will not be running normally until tomorrow morning."
Roads and buses packed
The AA said the A4 and M4 approaches to London were very busy and more cars than usual approached the capital from the King's Cross and Baker Street areas.
Traffic problems were worsened by an accident involving three lorries on the southbound slip road of the M1 where it joins the M25. The accident caused an 11-mile tailback involving an estimated 11,000 vehicles.
Main line suburban services in south-east England were packed from an early hour, with some trains making extra stops.
In central London, huge queues built up at bus stops, with many travellers unable to board over-packed buses.
Transport for London staff were on duty outside mainline railway stations handing out special maps to the thousands of commuters who decided to walk to work rather than join massive queues for buses.
While LU said just 15 train drivers had booked in for duty this morning, managers said that 80% of station staff had reported for work.
A free boat service was operating between Tower and Waterloo piers in the morning peak period capable of transporting 1,500 people an hour.
Parking restrictions in the capital remained in force even though more people drove into London to beat the strike.