The congestion charge exemption landscape in London changed dramatically on 2 January 2026. Electric vehicles are no longer fully exempt, the daily charge has risen to £18, and a new tiered discount system has replaced the old Cleaner Vehicle Discount. Understanding these rules is essential for anyone driving into central London.
The Congestion Charge is a daily fee for driving within the central London Congestion Charging Zone during charging times. The zone operates from 07:00 to 18:00 Monday to Friday, and from 12:00 to 18:00 on Saturdays, Sundays, and bank holidays. There is no charge between Christmas Day and New Year’s Day inclusive.
The standard daily charge is now £18 if paid in advance or on the day of travel. If you pay within three days after travel, the charge increases to £21. This represents the first increase since 2020, when the charge rose from £15 during the pandemic.
The most significant change affects electric vehicle owners. The previous 100% Cleaner Vehicle Discount ended on 25 December 2025, meaning electric cars now pay the Congestion Charge for the first time. Transport for London estimated that without these changes, more than 2,000 additional vehicles could enter the zone on an average weekday.
A new tiered discount system now applies, but only for electric vehicles registered for Auto Pay. Electric cars receive a 25% discount, reducing the daily charge to £13.50. Electric vans, HGVs, and quadricycles receive a 50% discount, paying £9 per day. These discounts apply automatically once the vehicle is on an active Auto Pay account, with no separate application required.
Some vehicles remain completely exempt from the Congestion Charge. Blue Badge holders qualify for a 100% discount, and the exemption applies to the person rather than the vehicle. A Blue Badge holder can nominate up to two vehicles per day. Vehicles with a disabled road fund licence receive the discount automatically without registration.
Motorcycles and mopeds are also fully exempt, as are taxis (black cabs) actively licensed by Transport for London. Vehicles with nine or more seats, such as buses and minibuses, qualify for exemption, though some may need to register. Motor tricycles measuring no more than one metre wide and two metres long are eligible for a 100% discount upon application.
Residents living within the Congestion Charging Zone can apply for a 90% discount, reducing the daily charge to £1.80. There is an annual £10 registration fee per vehicle, and the discount must be renewed each year. Applicants must provide proof of address and vehicle registration, such as a council tax bill and V5C logbook.
Bob Kiley’s role was pivotal: he led TfL during the congestion charge rollout and described his working relationship with Livingstone as “a CIA activist working for an unreconstructed Trotskyite”. Ken Livingstone’s 2003 policy charged drivers £5 a day to enter central London, a figure that has since risen to £18 in 2026.
However, the Residents’ Discount is currently closed to new applicants in some contexts, and significant changes are coming. From 1 March 2027, new applicants for the 90% Residents’ Discount will only qualify if they drive an electric vehicle. Existing discount holders will keep the 90% rate for all vehicle types, provided they renew annually.
A common misconception concerns Private Hire Vehicles. Since June 2020, PHVs have not been exempt from the Congestion Charge and must pay the full daily rate. The only exception is wheelchair-accessible vehicles (WAVs), which retain exemption but only when carrying out a TfL-licensed private hire booking.
Looking further ahead, the electric vehicle discounts will halve again from 4 March 2030. Electric cars will receive only a 12.5% discount, while electric vans, HGVs, and quadricycles will receive 25%. These reductions reflect TfL’s expectation that electric vehicle numbers will continue growing, making higher discounts unsustainable.
To benefit from any discount, drivers must set up a London Road User Charging account with Auto Pay. Registration is free, and Auto Pay automatically bills the registered payment method for chargeable journeys. Vehicles added to Auto Pay are protected from Penalty Charge Notices while the account remains active.
For electric vehicle owners specifically, no separate application is needed for the Cleaner Vehicle Discount. If the vehicle is correctly registered on Auto Pay, TfL applies the discounted rate automatically based on DVLA data. Non-UK registered electric vehicles must be registered with TfL and added to Auto Pay to receive the discount.
Failure to pay the Congestion Charge by midnight on the third day after travel results in a Penalty Charge Notice. The standard penalty is £180, reduced to £90 if paid within 14 days. TfL issued over 954,000 PCNs in 2024 alone, demonstrating the importance of staying compliant.
The Congestion Charge was introduced in 2003 under then-Mayor Ken Livingstone to reduce traffic and improve air quality in central London. It has since become a central component of the Mayor’s Transport Strategy, which targets 80% of all London trips to be made by foot, cycle, or public transport by 2041.
Congestion costs London an estimated £3.85 billion annually, averaging £942 per driver, according to the Mayor’s office. TfL argues that the charge remains essential for managing traffic, supporting bus services, and addressing poor air quality in the capital.
The rules continue evolving. From 1 March 2027, new residents seeking the 90% discount will need an electric vehicle. From 4 March 2030, all electric vehicle discounts will halve. Drivers should verify their specific circumstances on the official Transport for London website before travelling, as eligibility criteria and charge levels are subject to ongoing review.Yes, some vehicles and drivers still qualify for a full Congestion Charge exemption. Blue Badge holders receive a 100% discount, and the exemption applies to the person rather than the vehicle, allowing up to two nominated vehicles per day. Motorcycles, mopeds, and vehicles with nine or more seats are also fully exempt from the charge.
No, the 100% Cleaner Vehicle Discount for electric cars ended on 25 December 2025. From 2 January 2026, electric cars pay a discounted rate rather than nothing. If registered for Auto Pay, electric cars receive a 25% discount, reducing the daily charge to £13.50. Electric vans, HGVs, and quadricycles get a 50% discount, paying £9 per day.
The standard daily Congestion Charge is £18 if paid in advance or on the day of travel. If you pay within three days after travel, the charge rises to £21. The charge applies from 07:00 to 18:00 Monday to Friday, and from 12:00 to 18:00 on weekends and bank holidays. There is no charge between Christmas Day and New Year’s Day inclusive.
Yes, failure to pay results in a Penalty Charge Notice. The fine is £180, reduced to £90 if paid within 14 days. You must pay by midnight on the third day after travel to avoid the penalty. Setting up Auto Pay is strongly recommended to ensure charges are paid automatically and to avoid fines.
From 1 March 2027, new applicants for the 90% Residents’ Discount must drive an electric vehicle. Existing discount holders will retain their 90% discount regardless of fuel type, provided they renew annually. The discounted daily rate for residents is £1.80, with an annual £10 registration fee.
