Three major changes to London’s congestion charging scheme will take effect on January 2, 2026, impacting all drivers who enter the capital’s central zone.
The daily Congestion Charge will increase from £15 to £18 for those who pay in advance or on the day of travel, with a higher rate of £21 for payments made within three days after travel. This marks a 20% overall increase to the scheme that has managed central London traffic since 2003.
From £15 to £18 in advance, or a hefty £21 if you’re late—central London driving just got 20% more expensive.
The second significant change affects electric vehicle owners, who will lose their complete exemption from the charge. The 100% Cleaner Vehicle Discount ends on December 25, 2025, replaced by a tiered system. Transport for London implemented these changes as the growing number of EVs has diminished effectiveness of the congestion charge in reducing traffic volumes.
From January 2, 2026, electric cars registered on TfL’s Auto Pay system will receive a 25% discount, paying £13.50 daily, while electric vans, HGVs, and quadricycles on Auto Pay will qualify for a 50% discount, paying just £9 per day.
Registration for Auto Pay will be essential for accessing these discounts. Without Auto Pay registration, even zero-emission vehicles will face the full £18 charge. Setting up an account requires establishing a London Road User Charging account through TfL’s system. There will be no application fee for setting up Auto Pay or adding vehicles to your account.
The Congestion Charging Zone will continue to operate from 7am to 6pm Monday through Friday, and from noon to 6pm on weekends and bank holidays. No charges apply from Christmas Day to New Year’s Day inclusive.
Certain exemptions will remain in place, including those for Blue Badge holders and vehicles with nine or more seats.
Looking further ahead, electric vehicle discounts will reduce again from March 4, 2030, dropping to 12.5% for cars and 25% for vans and HGVs. The standard charge may also increase annually in line with Tube fares, typically inflation plus 1%.
Residents living within the zone will continue to receive their 90% discount, meaning they will pay just £1.80 daily when the new rates take effect. This 90% resident discount has been a key policy feature since the charge was first introduced in 2003, helping balance traffic reduction goals with local residents’ needs.
