London’s Congestion Charge Set to Rise: What Drivers Need to Know

 💷 Price Hike Incoming
London’s Congestion Charge is getting a serious tune-up. From 2 January 2026, the daily fee to drive into Central London will rise from £15 to £18 — that’s a 20% jump and the first increase since 2020, when the charge shot up from £11.50.

If you don’t pay within 48 hours, the penalty revs up to £180 (or £90 if you cough up quick within 14 days). The charging hours stay the same:

Weekdays: 07:00–18:00
Weekends: 12:00–18:00
 
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⚡ Electric Vehicles Still Get Some Love
EV drivers were braced to start paying full whack in December — but TfL has eased off the pedal. Electric cars will get a 25% discount (that’s £13.50 a day) as long as they’re registered for Auto Pay.

Big rigs and vans? You’ll see a 50% discount, meaning £9 per day.

But this is only the beginning:

March 2030: EV discounts drop to 12.5%, while HGVs and vans fall to 25%.
March 2027: Residents’ discounts for petrol and diesel car owners will be scrapped for new applicants — only EV owners will keep the benefit. 

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🏙️ Why the Increase?
According to City Hall, this move keeps Central London from grinding to a standstill. Without the rise, around 2,200 more vehicles would clog the zone every weekday.

London’s already got the most congested roads in Europe (for four years running), and TfL says the boost is “effective in managing traffic and congestion.”

The charge will also rise annually with public transport fares, keeping it in line with inflation.

 
🚚 Small Businesses Push Back
Not everyone’s feeling it. The Federation of Small Businesses (FSB) called the move “swingeing,” warning it hits companies when “small firms are making extremely tough decisions to stay competitive.”

Michael Lloyd from the FSB added that many businesses “won’t be able to absorb these extra costs,” potentially pushing prices up for customers in the zone.

 
🌍 Environmental Voices Chime In
While some call it harsh, others say it’s necessary. Sophie O’Connell of the Green Alliance backed the proposal, saying it helps make “driving a polluting vehicle through central London more expensive than taking public transport,” pushing drivers toward cleaner choices.

And following a Stonehaven Global report warning that removing EV discounts could spike nitrogen oxide levels by 11%, the mayor’s latest plan is seen as a “balanced package.”

 
🕰️ Quick Look Back
2003: Congestion Charge launches under Ken Livingstone — £5 a day.
2007: Zone expands west to Kensington & Notting Hill.
2011: Fee rises to £10.
2014: Climbs again to £11.50.
2020: Ramps up to £15.
Now, 2025 brings the £18 era.
 
💡 What About ULEZ?
Don’t mix ‘em up. The Ultra Low Emission Zone (ULEZ) charge — £12.50 a day for older, higher-polluting cars — remains separate. But if your vehicle triggers both, expect to fork out £30.50 per day to enter central London. Add the Silvertown or Blackwall tunnels at peak hours, and you could be paying up to £38.50 total. 

Interested in LEASING? 

Looking to lease a vehicle? Then why not get in contact today! Here at Express Vehicle Contracts our team is always happy to help with any queries! 

T: 0121 427 9477 

W: https://www.expressvehiclecontracts.co.uk/ 

E: sales@expressvehiclecontracts.co.uk 

 

 

Credits to Markus Marinka for the congestion sign image 

Credits to Sven Hansche for the London traffic image 

Credits to Supamotionstock for the EV hybrid vehicle being charged image