Transport for London (TfL) has announced a series of proposed changes to the Congestion Charge in central London, aiming to reduce traffic, encourage a shift to electric vehicles, and support more sustainable travel across the capital. The proposals, which are now open to public consultation until 4 August 2025, include raising the daily charge, introducing a new Cleaner Vehicle Discount, and gradually phasing out discounts for non-electric vehicles.
TfL has proposed increasing the daily Congestion Charge from £15 to £18 starting in January 2026 – the first rise since 2020. The increase is intended to ensure the scheme remains effective in managing congestion, with analysis showing that without the changes, over 2,200 additional vehicles could be entering the zone on an average weekday next year.
To support the uptake of electric vehicles, a new Cleaner Vehicle Discount (CVD) would be introduced from January 2026. Under the plan, electric vans, HGVs, and quadricycles registered for Auto Pay would receive a 50 per cent discount, while electric cars would receive 25 per cent. These discounts would then be reduced from March 2030 to 25 per cent and 12.5 per cent respectively. TfL intends to simplify access to the discount by using DVLA data automatically, meaning eligible drivers would only need to register for Auto Pay.
From March 2027, it is proposed that new applicants for the Residents’ Discount – currently a 90 per cent reduction – will only be eligible if they drive an electric vehicle. Those already receiving the discount before that date would not be affected.
TfL is also proposing a new mechanism that would allow the Congestion Charge to be increased annually in line with inflation, tube fare rises or by a lower amount, to ensure driving does not become disproportionately cheaper than using public transport. These changes would not apply to the Ultra Low Emission Zone (ULEZ).
The Congestion Charge was first introduced in 2003 and initially led to a 30 per cent drop in congestion within the zone and a 33 per cent boost in bus travel. TfL says the current proposals build on that success while supporting the Mayor’s broader goal of a cleaner, greener London.
Deputy Mayor for Transport Seb Dance 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.”
He added, “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.”
Christina Calderato, TfL’s Director of Strategy, said the proposed changes are designed to make the scheme more effective while also supporting those who still need to drive in central London. “With these proposed changes we want to make sure it continues to be effective in managing traffic and congestion… while providing ongoing support to those who need to drive in the zone to make the switch to an electric vehicle.”
The plans have received support from environmental groups and campaigners. Oliver Lord, UK Head of Clean Cities Campaign, said the proposals “strike a fair balance between its core aims around traffic and congestion, whilst also advancing our environmental goals.”
Izzy Romilly from the climate charity Possible added, “We’ve got to look for the best and fairest ways to discourage unnecessary car trips, while also making sure that people who need to drive can switch to fully electric vehicles.”
TfL is encouraging Londoners and stakeholders to take part in the consultation and help shape the future of road charging in the capital.
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