Transport for London (TfL) is planning a major shake-up of the Congestion Charge with a steep rise in the daily charge and revised rules for electric cars and vans from 2026.

The proposals, set out in a new public consultation and effective from January 2026, include a 20% hike in the daily charge from £15 to £18; marking the first increase in five years.

TfL is also consulting on some proposed changes to the Mayor’s road user charging guidance, which would allow the Congestion Charge to increase 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, and are intended to ensure that public transport does not become proportionately more expensive than driving in central London.

There’s also big changes for electric vehicles –  including proposals for a new Cleaner Vehicle Discount (CVD), replacing the scheme that ends on 25 December 2025. Currently, electric vehicles are entitled to a 100% discount under the CVD, subject to registration with TfL.

Transport for London has previously said that ending the CVD from 25 December 2025 would maintain the effectiveness of the Congestion Charge, but has now proposed new rules, set out in two phases.

From 2 January 2026, electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay will get a 50% discount, while electric cars registered for Auto Pay will get 25%.

From 4 March 2030, these fall to 25% and 12.5% respectively.

To make it easier for drivers to access the discount, it is proposed that it will be applied automatically from DVLA data, rather than having to separately register and prove a vehicle meets the standards. If the changes go ahead, drivers with eligible vehicles will simply need to sign up to Auto Pay to receive the discount.

And, from March 2027, and for new applicants only, the 90% residents’ discount will be available only for electric vehicles.

City Hall said the changes were vital to keep London moving by reducing congestion.

Seb Dance, deputy mayor for transport, said: “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.

“At the same time we must support Londoners and businesses to use greener and more sustainable travel. That’s why I’m pleased we’re proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.”

The proposals follow a campaign led by Clean Cities, and backed by electric van operators including the AA, Ocado and Openreach, calling on the Mayor of London to rethink his decision on scrapping the Congestion Charge exemption for EVs.

Oliver Lord, UK head of 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.”

But Logistics UK’s Chris Yarsley, senior policy manager – road freight regulation, warned that the new proposals will still present a significant increase in costs for electric vehicle operators, which currently operate in the capital without facing a charge.

“It is vital that TfL incentivise operators to decarbonise fleets and we continue to press for the continued exemption from the charge for electric vans and HGVs. Any increase in charges is a disincentive for operators to serve the capital and congestion charges should be used to encourage road users to use alternative modes of transport – an option that is not available to logistics operators.

“Operators have made significant investments moving to electric vehicles and they simply cannot afford to soak up additional costs so it is likely that any increase in charges will have to be passed on which will ultimately lead to increased prices for the end user.

“London depends on logistics businesses to keep the capital stocked with everything its businesses and consumers rely on every day, and the transition to alternatively fuelled vehicles should be incentivised, not penalised in this way.”

The public consultation runs until 4 August 2025 and can be accessed here.