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There are some major changes on route to the roads of London. So, if you’re somebody who drives through the streets of the capital city, you’re going to want to listen up. Transport for London and Sadiq Khan recently announced that from January 2026 (which is speeding towards us at a rather alarming rate), there will be some fairly significant changes being introduced for London drivers.
The congestion charge will be increasing for the first time since 2020, and the Cleaner Vehicle Discount will also be having a little shake up, too. Here’s everything you need to know ahead of the changes coming into effect next month.
Changes to the London Congestion Charge
As of January 2, 2026, the congestion charge will rise by 20%. This means that the daily charge will increase from £15 to £18 if paid on the day or in advance, and from £17.50 to £21 if paid within three days of travel. The Congestion Charge Scheme has helped manage traffic and congestion in central London since it was first introduced in 2003. The upcoming price increase is being put in place to help keep the capital green, as well as reduce the number of cars on London’s roads to keep delays to a minimum. It’s been estimated by TfL that without these changes, over 2000 additional vehicles could be driving within the Congestion Charge Zone (CCZ) during operating hours on an average weekday.
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The CCZ operating hours are from 7am-6pm (Mondays-Fridays) and 12pm-6pm (Saturdays, Sundays, and Bank Holidays). There will be no charge between Christmas Day and New Year’s Day (inclusive). Congestion Charge Residents’ Discount holders will still be eligible for the 90% discount, and will be paying a daily charge of £1.80 from January 2. Support for low-income and disabled Londoners will still be available, offering discounts of up to 100%.
What other changes are being put in place in January?
The Cleaner Vehicle Discount (CVD) will also be seeing some major changes in the new year. Electric vehicle drivers currently don’t have to pay the congestion charge at all, but unfortunately for them, that’s about to change. The existing CVD will end on December 25. And from January 2, a tier system of discounts will be introduced.
Electric cars will now be eligible for a 25% discount on the full fee, whist electric vans, lorries, and quadracycles will receive a 50% discount. To qualify for the CVD, you must be registered on Auto Pay. To do this, drivers will need to register for a London Road User Charging account and set up the Auto Pay service from there.
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From (you guessed it, folks) January 2, 2026, TfL is also introducing an 100% congestion charge discount to electric car club vehicles that are picked up and returned to the same marked bay within the zone.
Mayor of London, Sadiq Khan, said: “Keeping London moving by reducing congestion is vital for our city and for our economy. While the congestion chare has been a huge success since its reintroduction, we must ensure it stays fit for purpose.
“We must support Londoners and businesses to use more sustainable travel, so I’m pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles.”
You can find out more about the Congestion Charge changes here.