Proposals to change the congestion charge are being considered by the Mayor of London.
If approved, it means from January 2026 electric vehicles (EV) would no longer be exempt from paying the charge.
TfL is currently reviewing responses from a public consultation, which it says will help Sadiq Khan reach a decision on whether to confirm the proposals for the congestion charging scheme, with or without modification.
The proposals were first put forward in May, and have since caused backlash from concerned charities, affected drivers and Khan critics in the London Assembly.
Here is all you need to know about what could change, who could be affected and why the plans are controversial.
What’s in the proposed plans?
Proposals include increasing the daily charge from £15 to £18 from the start of next year. For those who fail to pay the charge within three days of travelling, it increases to £21.
TfL says the hike is to ensure the congestion charge remains effective at managing traffic and congestion in central London.
But the major change is a new cleaner vehicle discount (CVD). This will replace the current scheme, where electric cars and vehicles are exempt from paying the congestion charge.
Under the new scheme, electric vans, HGVs, light quadricycles and heavy quadricycles will be subject to a 50% discount.
Electric cars will be able to get a 25% discount.
This means that people with an electric car would need to pay £13.50 every time they drive into central London, and traders with electric vans would pay £9.
This scheme would be in place until 2030, when the discount decreases to 25% and 12.5% for electric vans and cars respectively.
For residents who live within the congestion zone, a 90% discount will be available, but only for electric cars.
If both the hike in the daily charge and the new CVD rules come into force, TfL estimates it would generate £75m in profit in the first full financial year (1 April 2026-31 March 2027).
The charge currently applies from 7am-6pm Monday to Friday, and from 12pm-6pm on Saturday, Sunday and bank holidays. There is no charge between Christmas Day and New Year’s Day.
What about taxis and motorbikes?
London’s black cabs have always been exempt from paying the congestion charge, and that does not appear to change under the new proposals. This is because they are actively licensed by TfL.
This is the same for two-wheeled motorbikes (including sidecars) and mopeds.
Private hire vehicles (PHV), which includes companies like Bolt and Uber, will, however, be affected, to the disappointment of drivers.
According to July polling by Uber, 51% of surveyed EV drivers said they would consider going back to more polluting carbon-fuelled cars when the new charging regime kicks in, the Evening Standard reported.
A further 13% said they would consider quitting private hire vehicle work altogether.
More than nine out of 10 EV drivers said the current 100% discount is “extremely important” to them, and a similar proportion are opposed to the new proposals.
It is unknown whether the hike would lead to an increase in the price customers pay to use private hire companies like Uber, if it goes ahead next year.
‘Counter-productive’ proposals
In a letter to Transport for London (TfL), Elly Baker, Labour’s transport spokesperson in City Hall, called the proposals “counter-productive” which could push some to move back to using petrol and diesel cars.
She expressed concern over what it would mean for drivers who need to enter the congestion zone daily to deliver to small businesses, hospitals and schools.
“The Labour Group are concerned that a reduction in the CVD for vans and other vehicles being used by SMEs
will be counterproductive,” the letter says.
“Businesses need deliveries, as do hospitals and schools. Small businesses such as electricians and plumbers still need to enter the congestion charge zone to work.
“Therefore, we want these vehicles to be electric and retaining the 100% CVD will encourage more businesses to make the switch and avoid existing small businesses considering returning to petrol or diesel vehicles on a cost basis at a time when they are facing many economic pressures.”
Ms Baker also highlights the pressure car clubs – short-term car rental services that offer an alternative model to private car ownership – would come under, if the changes go ahead.
Collaborative Mobility UK, a car-sharing representative group and charity, said earlier this month that the changes will force the cost of car clubs to increase, reduce the sizes of fleets and cut the high number of electric vehicles they run.
The London Assembly letter read: “We share concerns from car club operators that the increased cost of the congestion charge, following the change to the current CVD, will make it economically unviable to operate electric car club vehicles in London.
“We are concerned that this could lead to an increased amount of privately owned and polluting vehicles.
“Congestion charge and CVD policies should therefore recognise and support car clubs as a tool overall to reduce unnecessary journeys and support a transition to cleaner vehicles.”
Why make changes?
TfL says without the proposed changes, more than 2,200 additional vehicles will be on the roads on an average weekday – leading to increased congestion and undermining the current scheme.
It says the new CVD scheme has a higher discount for journeys that are harder to do by walking, cycling or using public transport, and will give support to those making a transition to greener modes of transport.
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When announcing the scheme in May, 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.”
