Drivers in central London will face higher costs from next year as Transport for London confirms the first Congestion Charge increase since 2020. The daily fee will jump by 20% as part of efforts to combat air pollution and reduce traffic in the city centre.
What's Changing in 2026?
The Congestion Charge will increase from £15 to £18 per day starting January 2, 2026. This represents a £3 increase that applies during the standard charging hours of 7am-6pm on weekdays and 12pm-6pm on weekends.
In a significant policy shift, electric vehicles will lose their current exemption from the charge. Instead, electric car owners will receive a 25% discount, while electric vans and lorries will benefit from a 50% reduction.
Impact on Residents and Future Changes
Current residents within the congestion charging zone who enjoy a 90% discount will need to register on Auto Pay before March 1, 2027 to maintain their concession. After this date, new resident discounts will only be available for electric vehicle owners.
Low-income and disabled residents will continue to access their residents' discount until March 2030, regardless of their vehicle type. Further changes are planned for 2030, when electric car discounts will decrease to 12.5% and electric commercial vehicles will see their discount reduced to 25%.
Why the Increase Matters
Transport for London estimates the higher charge will prevent approximately 2,000 additional vehicles from entering the central zone on an average weekday. Mayor Sadiq Khan emphasised that maintaining London's mobility while reducing congestion remains crucial for both the city and its economy.
The Mayor stated: 'While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose. We must support Londoners and businesses to use more sustainable travel.'
This price adjustment marks the first change to the Congestion Charge in six years, reflecting ongoing efforts to balance transportation needs with environmental concerns in one of the world's busiest cities.
