Transport for London (TfL) is seeking views on a number of changes to the Congestion Charge, to encourage the uptake of electric vehicles (EVs) and promote sustainable travel across the capital.

To ensure the charge remains effective, TfL proposed that the level be increased from £15 to £18 from 2nd January 2026 – the first increase in five years.

In 2024 alone, vehicle congestion cost the capital £3.85bn, impacting businesses, bus customers and other essential services.

The Congestion Charge was implemented to manage traffic and congestion in the heart of London at the busiest times of day, where road space is most constrained.

TfL is consulting on changes to the scheme to ensure that it remains efficient at reducing congestion for years to come.

Achieving this will require cutting congestion further and a greater shift away from petrol and diesel vehicles towards walking, cycling and public transport; it will also require, for those journeys that are taken by car or van, increased adoption of EVs.

TfL assessed the proposals in this consultation against a ‘do nothing’ scenario, which would include the end of the current version of the Cleaner Vehicle Discount (CVD) on 25th December 2025.

Without TfL’s proposals, it estimated that next year alone around 2,200 more vehicles would use the Congestion Charging Zone on an average weekday during charging hours – leading to increased congestion and undermining the current scheme.

To provide support for people and businesses that have invested in – or are considering – switching to an electric vehicle, TfL proposed a CVD from January 2026 that has a higher discount for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans for commercial purposes.

The discount will change to give support to those making the green transition, while also keeping London moving.

This builds on an ongoing package of support from City Hall for businesses to switch to zero emission, including the Mayor’s scrappage scheme which has provided financial assistance to help eligible London residents, businesses and charities, to scrap, donate or retrofit vehicles that do not meet the Ultra Low Emission Zone (ULEZ) emissions standards.

Delivered jointly by the Mayor and TfL, the Mayor’s Air Quality fund (MAQF) has provided boroughs with £27m in funding, matched by £20m in funding and resources from boroughs and partners to help projects working to improve air quality in the capital, alongside action to increase the number of public EV charging points to 40,000 by 2030.

From 2nd January 2026, electric vans, HGVs, and quadricycles on Auto Pay will receive a 50% discount (25% from 2030), while electric cars will get 25% (12.5% from 2030).

The discount will be automatically applied using DVLA data, with no need for separate registration – drivers simply need to sign up for Auto Pay.

From 1st March 2027, eligible new applicants for the 90% residents’ discount will only be able to receive the discount for an EV, to incentivise the shift to the cleanest possible vehicles and give people moving into the zone time to plan ahead.

Those already registered for the discount ahead of this date will not see any changes, reflecting that they might be reliant on their current form of transport.

TfL is also consulting on some proposed changes to the Mayor’s road user charging guidance, which would allow the Congestion Charge to be increased each year in line with Tube fares, inflation plus 1% or a lower amount.

These increases would only apply to the Congestion Charge and not the ULEZ.

The proposed procedure would create consistency with the approach that applies when public passenger transport fares are set and would ensure that public transport does not become proportionately more expensive than driving in central London.

When the Congestion Charge was introduced in 2003, there was a 30% reduction in congestion within the zone and a 15% reduction in circulating traffic in the first year.

It also boosted bus travel by 33% and contributed to a 10% shift in people using public transport or active travel.

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.

“Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

“We encourage everyone to have their say and respond to the public consultation.”

Christina Calderato, director of strategy at TfL, said: “Since it was introduced in 2003, the Congestion Charge has been hugely successful in supporting the move to more walking, cycling and public transport and encouraging the uptake of the cleanest vehicles.

“With these proposed changes we want to make sure it continues to be effective in managing traffic and congestion in central London while providing ongoing support to those who need to drive in the zone to make the switch to an electric vehicle.

“I would encourage people to respond to the consultation to help shape our plans.”

Oliver Lord, UK head of the Clean Cities Campaign, said: “We’ve record numbers of polluting diesel vans in the UK so I’m thrilled the Mayor is helping to reward businesses that invest in greener fleets.

“By prioritising electric and pedal powered freight, we will all benefit from cleaner air and quieter streets.

“There’s no use having a Congestion Charge that nobody pays so I think today’s proposals strike a fair balance between its core aims around traffic and congestion, whilst also advancing our environmental goals.”

Izzy Romilly, sustainable transport campaigner at climate charity Possible, said: “To tackle the climate crisis, health inequalities, and air pollution, we have to tackle London’s high levels of traffic.

“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.

“Getting the balance right on the congestion charge discount for EVs means incentivising the switch to electric, while discouraging car journeys that could be taken in a different way.

“The bigger picture is that we need to make space for bus lanes, safe cycle paths, and walkable streets so that we can bring a lower traffic future to life – tackling air pollution, protecting the climate and creating places that are better to live in.”

Sophie O’Connell, senior policy adviser at the Green Alliance, said: “It’s great to see London continuing its leadership in encouraging the switch to cleaner vehicles through the proposed changes to the Clean Vehicle Discount.

“With larger incentives for electric vans and delivery vehicles, which have further to go in decarbonising, these changes target the right areas.

“The new measures send a clear signal: driving a polluting vehicle through central London should not be cheaper than taking public transport, making the cleaner choice the obvious one while supporting both public health and the environment.”

These new proposals, launched in a public consultation starting today (27th May) until 4th August 2025, will work to continue managing traffic effectively in Central London.