Transport for London (TfL) has announced a series of proposed changes to the city’s Congestion Charge pricing plan in an effort to reduce the number of additional vehicles on the capital’s roads.
The proposed changes include revisions to the existing Residents’ discount, as well as the introduction of annual incremental increases to the Congestion Charge in line with rising public passenger transport fares.
The new proposals were launched as part of a public consultation and remain open until 04 August 2025, with each new change hoped to reduce long-term congestion and accelerate the adoption of both electric vehicles and public transport usage.
Seb Dance, Deputy Mayor for Transport, 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.
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.
We encourage everyone to have their say and respond to the public consultation.
Weighed against what TfL has called a ‘do nothing’ scenario in which the current version of the Cleaner Vehicle Discount (CVD) would come to an end on 25 December 2025, the proposals are estimated to prevent the addition of a further 2,200 more vehicles using the Congestion Charging Zone on an average weekday during charging hours.
In order to provide support for both people and business who have either already purchased or are considering the purchase of an electric vehicle, TfL has proposed a new CVD from January 2026 which would see an increased discount for journeys deemed less capable by walking, cycling or public transport, with examples provided including journeys made by vans for commercial purposes.
This discount will change over time in order to support to those considering the transition to a greener mode of transport and builds on an ongoing support package from City Hall aiming to support businesses in their switch to zero emission, which also includes elements of the Mayor’s scrappage scheme which provides financial assistance to help London residents, charities and businesses to scrap, donate or retrofit vehicles that do not fit the existing Ultra Low Emission Zone (ULEZ) standards.
The proposed discount change would be implemented across two distinct phases, with the first, effective from 02 January 2026, raising the discount to 50% for electric vans, Heavy Goods Vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay and 25% for electric cars registered for Auto Pay.
The second phase would see a change to a 25% discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay, and a 12.5% discount for electric cars registered for Auto Pay.
The change would also see the discount applied automatically from DVLA data as opposed to a system where drivers are required to individually register and prove their vehicle’s standard.
Christina Calderato, TfL's Director of Strategy, 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.
TfL has also proposed a change to the daily charge, which, if accepted, would see it rise from 15 GBP to 18 GBP from January 02 2026, the first price increase in five years.
Elsewhere, proposals could see eligible new applicants for the 90% Residents’ discount only able to receive the reduction for the use of an electric vehicle from 01 March 2027, with those already registered for the discount ahead of this date able to keep their current vehicle discount as before.
TfL has also stated it is consulting on a number of changes to the Mayor’s road user charging guidance, which, if accepted, would allow the Congestion Charge to be increased annually in line with Tube fares amounting to inflation plus 1% or a lower amount as necessary. This change would apply solely to the standing Congestion Charge and not the ULEZ, with TfL stating that the proposed change would create consistency with the approach that applies when passenger transport fares are set and ensure passenger transport remains a cheaper option that driving in central London.
First introduced in 2003, the Congestion Charge initially saw a 30% reduction in overall congestion within the zone itself, with a 15% reduction in circulating traffic between 2003 and 2004, as well as boosts to bus travel usage by 33% and a 10% shift in people using public transport.
