Congestion Charge proposals

Overview

The MTS contains proposal 20, which states:

“The Mayor, through TfL, will keep existing and planned road user charging schemes, including the Congestion Charge, Low Emission Zone, Ultra Low Emission Zone and the Silvertown Tunnel schemes, under review to ensure they prove effective in furthering or delivering the policies and proposals of this strategy.”

We are now consulting on changes we think will make the Congestion Charge more effective in managing traffic and congestion in central London while contributing to achieving MTS objectives. These include the sustainable mode share target; promoting efficient movement in central London, particularly of essential freight, servicing and bus journeys; and using road user charging schemes to address toxic air pollution, the climate emergency and traffic 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.

Our proposals are made up of three parts:

• Proposal A: Increasing the Congestion Charge from £15 to £18 so it remains effective in managing traffic and congestion and retains its deterrent effect. The charge was last increased in 2020
  
  
• Proposal B: New Cleaner Vehicle Discount (CVD) for electric vehicles whereby the discount varies by vehicle type. While the current CVD will end in December 2025, offering a new discount which will provide long term targeted support for electric vehicles will bring more of the benefits of electrification, including reduced carbon emissions and improved air quality in central London
  
  
• Proposal C: A change to the Residents’ Discount for new applicants to extend the incentivising effect of the CVD to residents

We’ve assessed our proposals against a ‘do nothing’ scenario, which would include the end of the current version of the CVD on 25 December 2025. Without our proposals, we estimate next year alone 2,200 more vehicles would use the CCZ on an average weekday during charging hours.

Additionally, on behalf of the Mayor, we are consulting on some proposed changes to the Mayoral Guidance on the exercise of our road user charging powers. The changes would better reflect the approach TfL follows when undertaking consultations in comparable circumstances and when setting charges for TfL services, notably public passenger transport fares.

A detailed description of the proposals, along with the implementation timetable, is provided on this webpage under the ‘Our Proposals’ tab. Subject to the consultation and if confirmed by the Mayor, the proposed changes would begin to come into effect from 2 January 2026.

Background

The Congestion Charging scheme was introduced in central London in February 2003. The primary objective of the scheme is to manage traffic and congestion in central London by reducing the number of vehicles that enter the Congestion Charge Zone (CCZ) by imposing a charge during the busiest times of day.

Following its introduction, the scheme has been very effective in reducing traffic and congestion in central London. There was a 30% reduction in congestion within the CCZ, and a 15% reduction in circulating traffic. It remains an integral part of managing demand for road space in central London and delivering the aims of the Mayor’s Transport Strategy (MTS). We keep the charge under review to ensure it remains effective in managing traffic and congestion, making changes when necessary.

Without the Congestion Charging scheme and the changes made since its introduction, congestion would be far worse than it is now. Analysis shows there would have been three million additional journeys by car across London in 2019 without the changes TfL has introduced to encourage more sustainable travel patterns over the last couple of decades, of which the Congestion Charge was a critical first step.

Transport Strategy

The Mayor’s Transport Strategy (MTS) recognises that the success of London’s transport system relies on more Londoners choosing to walk, cycle and use public transport. As such, the central aim of the MTS is for 80% of all trips in London to be made on foot, cycle or public transport by 2041.

Central London is one of the world’s best-connected places, giving people options other than to drive. The MTS sets out that congestion must reduce in central London. Proposal 24.1 of the MTS states:

“The Mayor, through TfL and the boroughs, will seek to address the triple challenges of toxic air pollution, the climate emergency and traffic congestion through road user charging schemes including by expanding the Ultra Low Emission Zone London-wide.”

This will not only help deliver the vision and central aim of the MTS but also help address poor air quality and the climate emergency, deliver the Mayor’s ambition for Vision Zero and support vibrant, attractive and inclusive public spaces. Road user charging is an important tool for realising these objectives.

Every year, congestion costs the capital billions of pounds – in 2024 alone vehicle congestion cost London £3.85 billion, averaging £942 per driver. This heavily impacts businesses, bus customers and other essential services. Longer journey times affect us all.

The MTS outlines that since the introduction of the Congestion Charging scheme the challenges facing central London continue to change. It commits the Mayor and TfL to keeping the Congestion Charge continuously under review to ensure that it remains fit for purpose.

Our Proposals

Proposal A: Increasing the Congestion Charge from £15 to £18

The Congestion Charge has been set at £15 since 2020. It is now five years since the last charge level increase, and it is timely to review whether a further increase is necessary in order to maintain the deterrent effect of the charge in the context of wider inflation. We propose to increase the charge to £18 from 2 January 2026, which would be a lower increase than inflation since 2020. For those paying the charge in the three days after travel, the charge would increase from £17.50 to £21.

This increase would help to maintain the traffic management effects of the Congestion Charging scheme in central London, support the other aims of the MTS, and meet the Mayor’s ambitions to improve air quality in London, achieve a net zero carbon city by 2030 and cut congestion in the capital. The increase in charge level reflects the high value of road space in central London and has been assessed and is forecast to have a positive impact on (that is, to reduce) traffic in the CCZ.

Proposal B: Changes to create a new Cleaner Vehicle Discount

The current 100% Cleaner Vehicle Discount applies to all electric vehicles and is due to end on 25 December 2025.

The volume of electric vehicles seen in the zone means a continued 100% discount would lead to worsening traffic and congestion. However, in order to continue to support further adoption of electric vehicles we are proposing the introduction of a new Cleaner Vehicle Discount.

This will provide long-term support for the cleanest vehicles, recognising their contribution to reducing poor air quality and cutting carbon emissions, while ensuring their numbers do not significantly contribute to increased traffic and congestion in the CCZ.

Higher discounts would be available for those vehicle types which, overall, customers may find more difficult to switch to electric and require further support to make the switch.

Two phases of changes are proposed, with discounts halving in 2030 as the eligible vehicle numbers are expected to increase over time.

From 2 January 2026:

• 50% discount for electric vans, Heavy Goods Vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay
  
  
• 25% discount for electric cars registered for Auto Pay

From 4 March 2030:

• 25% discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay

• 12.5% discount for electric cars registered for Auto Pay
  
  

We also propose the discount is applied automatically to vehicles based on Driver and Vehicle Licensing Agency (DVLA) data. This will be a benefit for eligible customers as it will no longer be necessary to register for the Cleaner Vehicle Discount (or pay a registration fee).

We are also proposing that payment of the discounted charge is made by Auto Pay only. This means a vehicle must be registered for an Auto Pay account in order to benefit from the CVD.

Proposal C: Changes to the Residents' Discount for new applicants

Currently, residents of the CCZ receive a 90% discount because of their reduced ability to avoid the charge if they drive during charging hours. A relatively small charge applies because these vehicles contribute to traffic and congestion and to provide an incentive for residents to use more sustainable modes.

In the context of the proposed changes to the CVD it is timely to consider potential changes to the Residents’ Discount. As well as aligning with MTS policies on reducing private car use in favour of active, efficient and sustainable modes, our proposal reflects the London Plan approach to promoting car-free residential development in central London.

In order to support the proposed changes to the CVD and the greater availability and uptake of EVs compared to 2003 when the discount was first introduced, we are proposing that eligibility for the 90% Residents’ Discount will be limited to only electric vehicles, starting on 1 March 2027. It is considered appropriate to incentivise those residents who choose to own and operate a vehicle in the CCZ to do so in the cleanest available vehicles.

This would apply to new applicants only. To mitigate the impact on existing residents who may be reliant on their vehicle, no changes are proposed to those living in the zone who are already registered for the Residents’ Discount, or who register by 1 March 2027 when proposed changes are due to come in to effect, provided that the discount’s other eligibility criteria continue to be met and timely renewals are made.

We propose:

• For new applicants, the 90% Residents’ Discount would only apply to electric vehicles
• Residents who are already registered would retain the existing 90% discount, including for any new or replacement vehicles, if they continue to meet the discount’s other eligibility criteria and renew their registration each year

Mayoral Guidance on TfL’s exercise of road user charging functions

The Mayor may issue guidance as to the exercise of our road user charging functions. We must have regard to any guidance that is issued.

On behalf of the Mayor, we are consulting on some proposed changes to the current guidance which would better reflect the approach TfL follows when undertaking consultations in comparable circumstances and when setting charges for TfL services, notably public passenger transport fares.

Our Supplementary Information document sets out the proposed changes to the Mayoral Guidance in greater detail.