London will boost Congestion Charge by 20%, setting it at £18 per day starting from the following year.
Transport for London (TfL) has announced plans to increase the congestion charge in the capital from January 2026, raising it by 20% to £18 per day. This is the first rise since 2020 and marks a significant move to combat traffic congestion and promote sustainable travel in the city.
The proposed increase is aimed at mitigating the impact of congestion on businesses, bus customers, and other essential services, as well as encouraging the adoption of electric vehicles. TfL expects that without this increase, approximately 2,200 more vehicles would enter the congestion charging zone every weekday, exacerbating current congestion levels.
The rise comes following an evaluation of how congestion affects London, revealing that it cost the capital £3.85 billion in lost earnings due to traffic jams in 2024 alone [1]. The announcement has been met with mixed reactions, with environmental campaigners welcoming the move, while business leaders express concern about the additional costs for electric van drivers and others who will soon be subject to the charge.
To facilitate public feedback, TfL has launched a consultation that started today and runs until August, allowing Londoners to share their views on the proposed changes. TfL is also proposing an annual increase in the price of the congestion charge that would be linked to Tube fares, starting from 2026 [2]. This increase would affect only the Congestion Charge and not the Ultra-Low Emission Zone fee, which remains fixed at £12.50.
The Congestion Charge zone covers an area from Kings Cross in the north to Vauxhall in the south, and Paddington in the west to Whitechapel in the east [3]. Some drivers in the capital may find the combined daily cost of driving an older car in the city - when accounting for the £12.50 Ultra-Low Emission Zone charge - to be substantial, with the new charge amounting to £30.50 per day. For those who do not pay in advance or use automatic payments, the charge for travel up to three days after entering the zone will increase from £17.50 to £21 [3].
TfL also intends to offer discounts to electric car owners and eco-friendly HGVs, with electric van drivers receiving a 50% discount, down to £9 per day [3]. However, these discounts may be reduced to 12.5% for electric car drivers and 25% for HGV operators starting from 2030 [3].
The proposals also consider the residents' discount, with new residents living within the Congestion Charging Zone boundary and driving petrol and diesel cars set to lose their 90% discount. Existing residents will retain their discounts [3].
In response to the announcements, the Federation of Small Businesses (FSB) described the proposed increase as "swingeing" at a time when small firms are making tough business decisions to remain competitive [4].
As London strives to reduce congestion in the city, TfL is taking steps to update the Congestion Charge and encourage the adoption of electric vehicles. The consultation gives Londoners an opportunity to share their thoughts on the proposed changes and contribute to the development of a cleaner, greener, and more efficient capital.
References
[1] - TfL Refers to Inrix Report - https://inrix.com/global/press-releases/[2] - TfL's Plans for Future Congestion Charge Increases - https://tfl.gov.uk/info-for/media/press-releases/[3] - Congestion Charge Zone Boundary and Costs - https://tfl.gov.uk/modes/driving/congestion-charge[4] - FSB Criticizes TfL's Congestion Charge Proposal - https://www.bbc.co.uk/news/uk-england-london-61464821
- The rise in London's Congestion Charge, set for 2026, is part of the city's effort to combat traffic congestion and promote sustainable travel, particularly through the adoption of electric vehicles.
- TfL is considering linking the future annual increase in the price of the Congestion Charge to Tube fares, starting from 2026, as part of their strategies to address congestion in the city.
- The proposed changes in the Congestion Charge and Ultra-Low Emission Zone fees may have substantial financial implications for drivers in the capital, especially for those operating older vehicles.
- The insurance, finance, and transportation industries may need to adapt to these changes in London's Congestion Charge, taking into account the rising costs for certain vehicle types and the introduction of discounts for electric vehicles in the city's business environment.
