Posted on the 14th November 2025 in PHTM News

CHANGES CONFIRMED TO LONDON CONGESTION CHARGE

The Congestion Charge has been in place for over two decades, helping to manage traffic and congestion in central London.

The Cleaner Vehicle Discount (CVD) was introduced in 2019 to run until 25 December 2025, but now the Mayor has decided to continue incentivising the switch to electric vehicles (EVs), so that greener drivers still pay less.

The new system, with tiered discounts available via Auto Pay, means that:

•  The daily Congestion Charge will increase from £15 to £18 from 2 January 2026 – a lower than inflation increase and the first increase since 2020

•  As part of the first phase from 2 January 2026, there will be a 50 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay as well as a 25 per cent discount for electric cars registered for Auto Pay

•  As part of the second phase from 4 March 2030, there will be a 25 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay and a 12.5 per cent discount for electric cars registered for Auto Pay

Since the CVD was introduced in 2019, the number of EVs registered has risen almost sixfold - from around 20,000 to more than 116,000 earlier this year – they will account for close to 20 per cent of all vehicles in the Congestion Charging Zone by the end of the year.

•  Alongside the new tiered system, the Residents’ Discount will change to incentivise longer term take-up of EVs, with those currently living in the area remaining unaffected. Those who are in receipt of the Residents’ Discount prior to 1 March 2027 will retain their 90 per cent discount, regardless of vehicle fuel type. For those newly applying for the Residents’ Discount after 1 March 2027, the 90 per cent discount will only apply to EVs.

•  There will be further support for low-income and disabled residents receiving certain benefits, so that they can continue to apply for the Residents’ Discount until March 2030 without their vehicle needing to be electric.

•  There will also now be a new 100 per cent discount for ‘back to base’ electric car club vehicles. This is for car club EVs that are hired from and returned to the same marked parking space within the zone.

Sadiq Khan, Mayor of London, said: "Keeping London moving by reducing congestion is vital for our city and for our economy. While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

"We must support Londoners and businesses to use more sustainable travel, so I'm pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles, as we work to build a greener and better London for everyone."

• Register for a London Road User Charging account, sign up to TfL Auto Pay and add your vehicle if you have not already done so. Auto Pay is required for certain discounts, including the new CVD tiered system and the Residents’ Discount

Register now: tfl.gov.uk/auto-pay


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