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Transport for London (TfL) has put forth a proposal to increase London’s Congestion Charge by 20%, bringing it up to £18. This increase will go into effect on January 2, raising the daily fee from £15. This marks the first increase since June 2020 when the charge surged by 30% from £11.50. Failure to pay the charge promptly will result in a penalty of £180, reduced to £90 if settled within 14 days. The congestion charge operates between 07:00 and 18:00 on weekdays and 12:00 and 18:00 on weekends.
Electric car drivers in central London, who currently enjoy free travel within the zone, were slated to begin paying the full charge in December. However, they will now receive a 25% discount if registered for auto pay. Additionally, HGVs will be eligible for a 50% discount. TfL aims to adjust the levy annually to align with public transport fare increments, typically reflecting inflation rates. The Federation of Small Businesses (FSB) criticized the increase as severe, highlighting the challenging business environment many small firms are navigating to stay competitive.
City Hall asserts that implementing the proposed changes is essential to prevent an additional 2,200 vehicles from entering the zone on a daily basis. This increase is seen as a strategic measure to manage traffic and congestion effectively in central London. London is recognized for having the most congested roads in Europe for the fourth consecutive year. Applications for new residents’ discounts for petrol and diesel car owners will cease entirely by March 2027, pending the outcome of a public consultation set to run until August 4
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