Drivers in London could be hit with an extra £40 million in Congestion Charge fees when the daily charge increases from £15 to £18 from 2 January 2026, according to new research from cinch, the UK’s leading online used car retailer.
A Freedom of Information (FOI) request was submitted to Transport for London (TfL), which revealed that £202.8 million was generated in Congestion Charge payments between April 2024 and March 2025.
Based on these volumes, cinch analysis suggests the price increase could push total TfL revenue to more than £243 million in 2026.
Ben Welham, motoring expert at cinch, said, “The £3 daily increase means a commuting driver will pay £4,500 per year in Congestion Charge fees if they drive into the capital five days a week, a hike of £750.”
Our analysis, based on 250 working days per year, highlights the heavy financial impact the increase will have on individual drivers and businesses.
Congestion Charge has tripled since 2003
Since its introduction at £5 per day in 2003, the Congestion Charge cost has increased by 200% to its current £15 level.
The 20% increase coming in January 2026 is due to be followed by annual increases in the charge from 2027 onwards, in line with other TfL fares on trains, buses and the London Underground.
Electric vehicle drivers are liable for the Congestion Charge for the first time from 2 January 2026. However, they can take advantage of a 25-50% discount by setting up Auto Pay.
Welham explained: “EV drivers will be hit with the charge for the first time, but car drivers will get 25% off and van drivers will get 50% off the daily £18 fee by setting up Auto Pay. Petrol and diesel HGV drivers can also benefit from a 50% saving by using Auto Pay.”
