TfL reports that congestion costs London billions of pounds in lost productivity, with congestion in 2024 costing the capital £3.85bn, approximately averaging £942 per driver.

Thus, TfL is consulting on changes to the Congestion Charging scheme to ensure that it remains efficient at reducing congestion for years to come.

The proposals include:

• Proposal to set the daily charge at £18 from January 2026
• From March 2027, and for new applicants only, the Residents’ discount will be available only for electric vehicles
• Proposal to move to incremental annual increases to the Congestion Charge

These new proposals, launched in a public consultation until 4 August 2025, will work to continue managing traffic effectively in central London.

Additionally, TfL has assessed the proposals in this consultation against a ‘do nothing’ scenario, which would include the end of the current version of the Cleaner Vehicle Discount (CVD) on 25 December 2025.

Without TfL’s proposals, it estimates next year alone around 2,200 more vehicles would use the Congestion Charging Zone on an average weekday during charging hours.

The proposed new discount will be introduced in two phases from 2 January 2026 at 50% for electric vans, Heavy Goods Vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay. The discount will be 25% for EVs registered for Auto Pay.

From 1 March 2027, it is proposed that eligible new applicants for the 90% Residents’ discount will only be able to receive the discount for an electric vehicle.

This will help to incentivise the shift to the cleanest possible vehicles and give people moving into the zone time to plan ahead.

Those who are already registered for the discount ahead of this date will not see any changes, reflecting that they might be reliant on their current form of transport.

From 4 March 2030, the discount will be 25% for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay, with it standing at 12.5% for EVs registered for Auto Pay.

Deputy mayor for transport Seb Dance 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.”