London drivers have been told to expect a higher daily Congestion Charge from early 2026 after Mayor Sadiq Khan set out a package of changes to road pricing. The adjustment will affect thousands who commute by car into central London and will reshape costs for car clubs, residents and motorists who travel in and out of the charging zone.
What exactly will change to the Congestion Charge?
From 2 January 2026 the Congestion Charge will rise from £15 to £18 per day. This is the first increase in six years and forms part of a broader reform of London’s road-charging framework.
- Daily charge: £18 from Jan 2, 2026.
- Future adjustments: linked to annual increases in Tube fares.
- Exemptions revised for certain vehicles and residents.
Why are future rises tied to Tube fare increases?
City Hall says linking future Congestion Charge rises to London Underground fare adjustments will keep rail travel competitively priced versus driving. The aim is to encourage public transport use and reduce road congestion.
Sadiq Khan argued the move is needed to prevent thousands more vehicles entering the charging zone each weekday and to sustain a shift to greener travel.
Who will pay and who keeps reliefs?
Transport for London confirmed some exemptions will remain. But the scheme narrows who benefits.
- Back-to-base car club EVs that are resident within the zone and returned to the same bay will keep full exemption.
- All other shared cars will be charged the new £18 rate.
- Existing residents with the 90% discount will retain it.
- From March 2027, the 90% residents’ discount will be available only to new residents who own electric vehicles.
- Low-income and disabled residents remain fully exempt until 2030.
What this means for car-sharing operators and drivers
Shared mobility groups warn the policy could undermine car clubs across the capital. Operators say the higher charge and a reduced EV discount will raise operating costs.
One major operator estimated the combined effect could amount to about £878,000 over five years.
Richard Dilks, CEO of CoMoUK, said the changes risk cutting access to shared cars that help reduce costs and emissions for Londoners.
Numbers that put the rise in context
Current figures paint a picture of how many people this affects and the enforcement footprint.
- Around 41,000 drivers pay the Congestion Charge each weekday.
- TfL issues roughly 2,500 penalty charge notices each day for non-payment.
- Each penalty for non-payment stands at £180.
- The Congestion Charge runs alongside the £12.50 ULEZ fee and new tunnel tolls for Silvertown and Blackwall, charged between £1.50 and £4 per trip.
Stakeholder reactions and political framing
The announcement has split opinion. City Hall frames the rise as a tool to tackle congestion and fund sustainable travel. Critics highlight the burden on ordinary drivers and the knock-on effect on shared transport schemes.
- Mayor’s view: a necessary step to keep London moving and reduce car traffic.
- Motoring groups: warn of penalising everyday drivers.
- Shared mobility charities: fear damage to car-sharing viability and access.
How this fits into the charge’s history and wider transport charges
The Congestion Charge began in 2003 at £5 per day and has increased in stages over two decades. Major milestones:
- 2003: Introduced at £5 a day.
- 2014: Rose to £10 and later to £11.50 the same year.
- 2020: Increased to £15.
- 2026: Set to rise to £18.
Combined transport charges are becoming more complex. Drivers now face overlapping costs: the Congestion Charge, ULEZ fees, and new tunnel tolls.
Key dates to watch for affected drivers and residents
- 2 January 2026 — New Congestion Charge rate of £18 comes into force.
- March 2027 — New residents qualify for the 90% discount only if they own an electric vehicle.
- Until 2030 — Low-income and disabled residents remain fully exempt.
Practical tips for Londoners navigating the change
Drivers and shared-mobility users can take steps to reduce costs or avoid penalties.
- Check whether your car club vehicle qualifies as a back-to-base EV resident car.
- Consider switching to public transport on weekdays when possible.
- New residents should weigh the residents’ discount rules when buying a car.
- Pay charges on time to avoid a £180 penalty.
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