London’s congestion charge could rise by 20% next year under new proposals, in the first hike since 2020.
Transport for London (TfL) has started a consultation on behalf of London mayor Sadiq Khan to increase the daily charge from £15 to £18 from January 2026.
The fee was last put up five years ago, with a 30% rise from £11.50.
Combined with the £12.50 ultra-low emission zone charge, owners of older cars would have to pay £30.50 a day to drive in the capital.
TfL said the cost could rise annually by 2026 and the proposed 20% rise is below the inflation increase for the six years it will have been since the last rise.
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A second proposal is a new cleaner vehicle discount which will see a 50% discount for electric vans, heavy goods vehicles and quadricycles using Auto Pay and a 25% discount for electric cars using Auto Pay.
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Currently, all electric vehicles can drive through the congestion zone for free but that is set to end on Christmas Day this year.
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The proposal also suggests electric vehicles should get less of a discount by 4 March 2030, with 25% for the first set of vehicles and 12.5% discount for electric cars.
TfL said the discounts would be applied automatically based on DVLA data so eligible customers will no longer have to register for the cleaner vehicle discount and pay a registration fee.
A third proposal would affect residents not using an electric car, as the current 90% blanket residents’ discount would be removed from 1 March 2027.
TfL said this would be appropriate to “incentivise” residents to own “the cleanest available vehicles”.
However, it said the removal of the 90% discount for non-EVs would only apply to new applicants, so those already registered for the residents’ discount would not have to pay the charge each day.
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The consultation, which runs until 4 August on TfL’s “have your say” website, said the changes will make the congestion charge “more effective in managing traffic and congestion”.
“The mayor also has ambitions for London to become a net-zero carbon city by 2030 and for the World Health Organisation’s air quality guidelines to be achieved as soon as possible,” it adds.
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Seb Dance, deputy mayor for transport, said: “Keeping London moving by reducing congestion is vital for our city and for our economy.
“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.”
The congestion charge zone was first introduced by Ken Livingstone in 2003 at £5 a day and was doubled in 2010, then rose again in 2014 to £11.50.
The zone is one of the largest in the world, despite it being reduced in 2007 and 2011.
In 2019, the ultra-low emission zone was introduced for vehicles that do not meet the emissions standards, so they must pay both charges.
It was expanded in 2023 to cover the whole of Greater London.
Failure to pay the congestion charge on time can mean a fine of between £65 and £195.
