Transport for London (TfL) has confirmed a series of updates to the Congestion Charge designed to further reduce traffic and ease congestion in central London. These changes , including a revised daily charge, a new Cleaner Vehicle Discount structure and updated rules for electric vehicles, will begin coming into effect from 25 December 2025, with the full rollout on 2 January 2026.

For businesses, fleet operators and private drivers, understanding these changes early will be essential for planning travel and managing costs.

Daily Congestion Charge Increasing to £18

From 2 January 2026, the daily Congestion Charge will rise from £15 to £18 when paid on or before the day of travel.

For Fleet Auto Pay users, this updated charge will be automatically debited unless the vehicle qualifies for a discount or exemption.

There will continue to be no charge during the festive period, from 25 December to 1 January inclusive.

The Current 100% Cleaner Vehicle Discount Ends in 2025

The existing 100% Cleaner Vehicle Discount (CVD), which currently exempts electric vehicles from the Congestion Charge, will end on Thursday 25 December 2025.

After that date, electric vehicles will no longer be exempt, and a new, more nuanced discount structure will replace it.

New Tiered Cleaner Vehicle Discount (From January 2026)

From 2 January 2026, TfL will introduce a new tiered system of Cleaner Vehicle Discounts. This new framework reflects the growing number of electric vehicles on London’s roads and aims to encourage continued uptake while managing congestion.

New Discount Rates from 2 January 2026

• 50% Discount for:

  • Electric vans

  • Electric HGVs

  • Electric quadricycles = Daily charge: £9

• 25% Discount for:

  • Electric cars = Daily charge: £13.50

These discounts apply only to vehicles registered for Auto Pay, including Fleet Auto Pay.

Reduced Discounts Coming in 2030

As electric vehicle adoption increases, the discount level will reduce again from 4 March 2030:

• 25% Discount for electric vans, HGVs and quadricycles

• 12.5% Discount for electric cars
  
  

How to Receive the New Cleaner Vehicle Discount

If you already use Fleet Auto Pay, you will not need to take any action.

Provided your electric vehicle is:

• Included in your Fleet Auto Pay service

• Listed with correct vehicle details

…then the new Cleaner Vehicle Discount will be applied automatically.

From 2 January 2026, fleet operators will also benefit from simplified administration:

• Eligible EVs can be added via bulk upload

• No £10 registration fee per vehicle

• No separate CVD registration required

Only electric cars, vans, HGVs and quadricycles qualify for this new discount. Other electric vehicle types may still be eligible under existing Congestion Charge discount schemes.

Future Price Adjustments

TfL has confirmed that a new mechanism is being introduced for making routine changes to London’s road charging schemes.

Under this process, the Congestion Charge may be adjusted annually without the need for a public consultation, in line with:

• Tube fare increases

• Inflation + 1%

• Or a lower amount chosen by TfL

These adjustments apply only to the Congestion Charge, not the ULEZ. Any decision remains subject to approval by TfL and the Mayor.

What This Means for Drivers

These changes mark a significant shift in how the Congestion Charge will operate in the years ahead. Electric vehicles will continue to benefit from discounts, but no longer enjoy full exemption. Businesses and private drivers operating fleets or travelling regularly into central London are encouraged to review vehicle details, costs and routing ahead of the 2026 changes.

For more information, TfL provides a full breakdown of the updated Congestion Charge structure and new Cleaner Vehicle Discount criteria.

Changes to the Congestion Charging scheme - Transport for London