Transport for London (TfL) has proposed raising the Congestion Charge in London by 20%, taking the daily fee from £15 to £18 starting 2 January 2025. The increase would mark the first adjustment since June 2020, when the charge rose from £11.50 to £15 during the COVID-19 pandemic.
The Congestion Charge operates between 07:00 and 18:00 on weekdays and from 12:00 to 18:00 on weekends. Motorists who fail to pay within 48 hours face a fine of £180, reduced to £90 if paid within 14 days.
Electric Vehicle Discounts Adjusted
Electric vehicles (EVs), which currently enjoy full exemption, will soon pay a discounted daily rate of £13.50—representing a 25% discount—as long as they are registered for auto pay. The discount will shrink further to 25% by 2030, while heavy vehicles such as HGVs and quadricycles will receive a 50% discount, later decreasing to 12.5%.
TfL had previously announced its intention to eliminate EV exemptions entirely. However, concerns raised by advocacy groups and environmental experts—including a report warning of an 11% rise in nitrogen oxide emissions—led to the latest compromise. Oliver Lord of Clean Cities described the updated proposal as a “balanced package.”
Residents’ Discount to Be Scrapped for Petrol and Diesel Drivers
Starting March 2027, new applications for the residents’ discount will be restricted to electric vehicle owners only. Petrol and diesel drivers will no longer be eligible. Existing residents already receiving the 90% discount will not be affected by the change.
Annual Increases and Policy Alignment with Inflation
TfL also aims to align future Congestion Charge increases with public transport fare adjustments, which typically follow inflation. City Hall warned that without the proposed changes, at least 2,200 additional vehicles could enter central London daily, worsening traffic and pollution.
London continues to hold the title of Europe’s most congested city for the fourth consecutive year.
Ulez Charges Remain Unchanged
The Ultra Low Emission Zone (Ulez) remains unaffected. Drivers of older vehicles still face a £12.50 daily charge across all London boroughs. Those entering both the Ulez and Congestion Charge zonesy could pay up to £30.50 a day, excluding additional tolls such as the Silvertown or Blackwall tunnels.
Payment Structure Changes
Under the new proposal, paying the Congestion Charge on the day or in advance would cost £18, while payments made by midnight on the third day after travel would rise to £21. TfL also plans to simplify discount eligibility for EVs by automatically applying it using DVLA vehicle data.
A Brief History of the Congestion Charge
Introduced in February 2003 at £5 per day under then-mayor Ken Livingstone, the Congestion Charge has steadily increased over time. It reached £10 by 2011 and £15 by 2020. The western extension, added in 2007, was later abolished in 2011.
