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London’s transport authority has proposed a 20 per cent increase in the congestion charge and ending a residents’ discount for non-electric vehicles, in changes the body said would maintain the fee’s effectiveness.
Under the proposals, which are subject to public consultation, the standard congestion charge would rise from January 2 next year to £18 per day, from £15 currently.
The plans would also eliminate a 90 per cent discount for drivers who live in the congestion charge zone, in central London, unless they have a pure EV.
The announcement comes as Transport for London continues its efforts to restore its finances, which were battered by the fall in traffic during the coronavirus pandemic. A person close to TfL said the changes were expected to generate an additional £30mn in revenue during 2026.
TfL required several short-term bailouts from the previous Conservative government and has demanded that chancellor Rachel Reeves implement a new, long-term funding deal for the organisation at the spending review in June.
The congestion charge, levied on vehicles entering central London between 7am and 6pm Monday to Friday and between noon and 6pm at weekends, was controversial when it started in 2003 but has since become largely accepted. The charge was last raised in 2020.
Among the proposed changes is a shift in the focus of the cleaner vehicle discount, which exempts all EVs from the charge.
From January 2, the discount would be limited to 50 per cent for electric vans and heavy goods vehicles and 25 per cent for electric cars. It would then be further reduced from March 2030 to 25 per cent for vans and 12.5 per cent for cars.
The move to charge EVs is a response to a sharp growth in the number of such vehicles entering central London, which has undermined the charge’s effectiveness in combating congestion.
Seb Dance, deputy mayor for transport, said TfL’s modelling suggested that, without the introduction of a charge for EVs, an extra 2,200 vehicles would drive in the congestion charging zone next year on an average weekday.
“Keeping London moving by reducing congestion is vital for our city and for our economy,” Dance said. “The congestion charge has been a huge success since its introduction, but we must ensure it is fit for purpose.”
The Conservative opposition to London’s Labour-led administration has frequently attacked the introduction and expansion of the separate London ultra-low emissions zone for vehicles under mayor Sadiq Khan.
The City Hall Conservatives did not immediately respond to a request for comment.
