TfL proposes annual increases to congestion charge

29/05/2025 | GEORGE BARKER

TfL proposes annual increases to congestion charge

Transport for London (TfL) has outlined plans to increase the general cost of the congestion charge from next year with potential annual increases after that - although it has also proposed a clean vehicle discount.

TfL has also proposed possible annual increases to the price of the congestion charge, which had been held steady for the last five years.

Since 2020, the daily charge sits at £15 per day if you paid in advance, or £17.50 by midnight on the third day after travel. This will be increased to £18 and £21 respectively from January 2026.

TfL said it was also looking to adjust the Mayor's road user charging guidance to allow for annual increases to the congestion charge in line with Tube fares.

Green discount

The proposed new green vehicle discount would be introduced in two phases. 

From 2 January 2026, TfL plans to give a 50% discount for electric vans, heavy goods vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay, with a 25% discount for electric cars registered for Auto Pay.

Following that, from 4 March 2030, there will be a 25% discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay and a 12.5% discount for electric cars registered for Auto Pay.

It has also proposed that from 1 March 2027, only new applicants with EVs will be eligible for the 90% residents’ discount. However, those already registered for the discount will not see any changes.

Seb Dance, deputy mayor for transport, said: 'The congestion charge has been a huge success since its introduction, but we must ensure it is fit for purpose. Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

'At the same time we must support Londoners and businesses to use greener and more sustainable travel. That's why I'm pleased we're proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles. We encourage everyone to have their say and respond to the public consultation.'

TfL is seeking views on these changes. The public consultation was launched on 27 May and will last until 4 August and can be accessed here.

Image credit: Shutterstock @Claudio Divizia

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