London’s Congestion Charge to rise to £18 and SMEs investing in ‘greener fleets’ rewarded – London Business News | Londonlovesbusiness.com

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London’s Congestion Charge will increase from £15 to £18 from January 2026 and there will be “incremental annual increases,” under plans that Transport for London (TfL) has announced.

TfL is also proposing a new cleaner discount for 100% electric vehicles (EVs) was to end on Christmas Day which would have seen them paying for the Congestion Charge.

However, electric van drivers will be given a 50% discount and EV motorists will receive a 25% discount from 2 January 2026.

The proposed changes will now be put out for public consultation.

Seb Dance, Deputy Mayor for Transport, 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.”

Oliver Lord, UK Head of Clean Cities Campaign said, “We’ve record numbers of polluting diesel vans in the UK so I’m thrilled the Mayor is helping to reward businesses that invest in greener fleets.

“By prioritising electric and pedal powered freight, we will all benefit from cleaner air and quieter streets.

“There’s no use having a Congestion Charge that nobody pays so I think today’s proposals strike a fair balance between its core aims around traffic and congestion, whilst also advancing our environmental goals.”



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