Hikes planned for London drivers – here’s what you will be paying

London Driving

Transport for London has proposed changes to the central London Congestion Charging scheme, which will see some drivers paying more from the start of next year.

The scheme was introduced in February 2003. Its primary objective is to manage traffic and congestion in central London by imposing a charge during the busiest times of day.

The proposals include a change in the charge level from £15 to £18, a new discount for electric vehicles and a change to the Residents’ Discount for new applicants. If introduced, the proposals would begin to come into effect from January 2026, Transport for London said.

The congestion charge applies to vehicles entering central London between 07h00 and 18h00 between Monday to Friday, and between 12h00 and 18h00 on weekends.

Planned changes

The proposals are made up of three parts:

  • Proposal A: Increasing the Congestion Charge from £15 to £18 so it remains effective in managing traffic and congestion and retains its deterrent effect. The charge was last increased in 2020.
  • Proposal B: New Cleaner Vehicle Discount (CVD) for electric vehicles, whereby the discount varies by vehicle type. While the current CVD will end in December 2025, offering a new discount which will provide long-term targeted support for electric vehicles will bring more of the benefits of electrification, including reduced carbon emissions and improved air quality in central London.
  • Proposal C: A change to the Residents’ Discount for new applicants to extend the incentivising effect of the CVD to residents.

“We’ve assessed our proposals against a ‘do nothing’ scenario, which would include the end of the current version of the CVD on 25 December 2025. Without our proposals, we estimate next year alone 2,200 more vehicles would use the CCZ on an average weekday during charging hours,” Transport for London said.

“Additionally, on behalf of the Mayor, we are consulting on some proposed changes to the Mayoral Guidance on the exercise of our road user charging powers. The changes would better reflect the approach TfL follows when undertaking consultations in comparable circumstances and when setting charges for TfL services, notably public passenger transport fares.”

A detailed description of the proposals, along with the implementation timetable can be found here. The consultation process closes on 4 August 2025.

Subject to the consultation and if confirmed by the Mayor, the proposed changes would begin to come into effect from 2 January 2026, Transport for London said.

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