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Congestion Charge to rise for the first time since 2020

Transport for London (TfL) is set to raise the London Congestion Charge on January 2 2026 from £15 per day to £18 per day.

Specifically, the charge is currently £15 per day if paid in advance or on the day of travel, or £17.50 by midnight on the third day of travel. After the increase, drivers will be charged £18 per day if paid in advance or on the day or travel, and £21 if paid by midnight on the third day of travel.

This is the first increase since 2020, when the charge was raised by 30 per cent.

The Congestion Zone is operational between 07:00 and 18:00 on weekdays and 12:00 and 18:00 on weekends. If the charge is not paid within 48 hours, drivers face a penalty of £180, reduced to £90 if paid within 14 days.

Electric car drivers currently travel for free within the zone and were expected to begin paying the full charge in December 2025. However, it has now been confirmed that EVs will receive a 25 per cent discount on the standard daily charge (meaning they will pay £13.50 per day), provided they are registered for auto pay. HGVs and vans will receive a 50 per cent discount.

City Hall estimates that the increased charge will deter at least 2,200 vehicles from driving within the zone each weekday.

The residents’ discount, which allows those living within the zone to receive a 90 per cent discount on the charge, is set to be removed for new applicants from March 2027.

The separate ULEZ charge will remain the same. However, the increased Congestion Charge means that drivers will pay £30.50 per day to travel within the zone.

Contract hire and fleet management specialists

We at Marshall Leasing are interested in the latest news about road safety, and we trust you find this information interesting.

If you would like to find out more about how you could benefit from our all-inclusive fleet management offering, please get in touch with our team of experts by emailing info@marshall-leasing.co.uk or calling 01480 414541. We will be delighted to assist.

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