The Congestion Charge is a fee that you must pay if you drive through central London at certain times of the day. First introduced 20 years ago, the purpose of this scheme is to reduce traffic congestion and improve air quality in urban areas.
The Congestion Charge is only enforced in London, but its use has been considered in other major cities. It operates alongside the Ultra-Low Emission Zone (ULEZ); however, they are completely different schemes, so drivers may need to pay both fees.
What are congestion charges?
London is currently the only city in the UK which has a Congestion Charge. Drivers that enter this Congestion Charge zone must pay a daily fee.
£15 if you pay in advance or on the same day
£17.50 if you pay up to three days after you travel
Penalty Charge Notice (PCN) of £160 if unpaid, reduced to £80 if paid within 14 days, or increased to £240 after 28 days
The Congestion Charge was implemented to limit the number of vehicles in the centre of London. Although this scheme was initially controversial, the benefits are clear:
Traffic entering this zone during the weekday has decreased by 18%
Congestion has been reduced by 30%
Bus travel in central London has been boosted by 33%
10% of journeys have now switched to walking, cycling and public transport
By reducing traffic congestion and encouraging the use of public transport, air pollution is also limited which helps to protect the environment and local residents.
Learn more about the benefits of congestion charging.
Understanding the congestion charging zones
The Congestion Charge zone covers 1.3% of Greater London, stretching from Kings Cross, Vauxhall, Whitechapel, and Paddington. Key areas include:
Kings Cross
City Road
Old Street
Commercial Street
Tower Bridge Road
Elephant and Castle
Vauxhall
Park Lane
Edgware Road
Marylebone Road
Euston Road
Paddington
Whitechapel
City of London
West End
The Congestion Charge zones are clearly signposted with a large letter “C” in a red circle.
All roads around the perimeter of this zone are monitored by Automatic Number Plate Recognition (ANPR) cameras which read your number plate as you enter, drive around and leave the zone.
A check will then be conducted on your vehicle to ensure you’ve paid, and drivers that fail to pay within 3 days will receive a costly fine.
What time does the congestion charge apply?
This fee only applies:
Monday to Friday: 7am – 6pm
Saturday, Sunday & Bank Holidays: 12pm – 6pm
No charge: Outside of these hours and between Christmas Day and New Year’s Day bank holiday (inclusive)
If you're planning a trip, consider travelling outside these hours to avoid the charge.
How to pay congestion charges
Paying for the Congestion Charge is simple. You can either pay:
Online via the TfL website
On the phone at 0343 222 2222
At one of the blue and red self-service machines that are in car parks within this zone
Drivers that regularly travel through the Congestion Charge zone can use Auto Pay, which sets up automatic payments at a marginally discounted price. This can also be used to pay for any Low Emission Zone (LEZ) charges you may incur monthly too.
Can I check if I entered the zone?
Yes! You can check if your vehicle entered the Congestion Charge zone using tools like the Carwow Congestion Charge Checker. Simply enter your vehicle registration or postcode.
Exemptions and discounts
There are Congestion Charge exemptions and discounts available for some drivers and vehicles which you can apply for online. Residents living in London’s Congestion Charge zone receive a 90% discount, and the following qualify for a 100% exemption:
Blue badge holders, even if you don’t own a vehicle or drive
Vehicles with nine or more seats
Motorcycle riders (No need to register for exemption)
Breakdown and recovery vehicles
EV and hydrogen vehicles (Note: EVs will lose exemption from January 2026)
To receive the Congestion Charge discount, you must pay a £10 registration fee, and this will need to be renewed every year.
Use the TfL vehicle checker to see if your car qualifies.
Tips for navigating congestion charging
For some drivers, entering the London Congestion Charge zone is unavoidable, but with forward-thinking, you can navigate the congestion charging effectively and save yourself some money.
Use public transport: London’s network is accessible and affordable
Plan your route: Navigation apps can help avoid the zone
Travel off-peak: Enter the zone outside charging hours
Set up Auto Pay: Avoid fines and save money
Watch for signs: You won’t get a warning you’ll get a fine
Future developments and updates
Over the last few years, changes have been made to Congestion Charging. Following the outbreak of Covid-19, the price of the Congestion Charge was increased and the operating hours were recently reduced so drivers can enter this zone freely in the evenings.
What is changing about the congestion charge for EVs?
The changes confirmed by Transport for London (TfL) and the office of Sadiq Khan will come into effect from 2 January 2026. Here are the headline points.
The daily Congestion Charge will increase from £15 to £18.
The existing 100% discount for EVs (the so-called “Cleaner Vehicle Discount” or CVD) ends on 25 December 2025.
From 2 January 2026, a tiered discount will replace the full exemption:
Electric cars on Auto Pay: 25% discount, meaning about £13.50/day.
Electric vans, HGVs, quadricycles on Auto Pay: 50% discount, i.e. about £9/day.
From 4 March 2030, discounts will be reduced further: electric cars will get a 12.5% discount, and electric vans/HGVs/quadricycles 25%.
Eligibility for the discount requires vehicles to be registered for TfL’s Auto Pay system. In short, from 2026, EVs will no longer be exempt from the Congestion Charge. Instead, they will pay a reduced daily fee.
Why is the congestion charge change happening?
TfL and the Mayor’s office argue several reasons behind these reforms:
The 100% EV exemption has lost much of its original effect: as more EVs dominate the CCZ, the Congestion Charge’s ability to deter traffic and reduce congestion has weakened.
Between growth in EV numbers and increasing traffic, TfL estimates that without change, there could be about 2,200 extra vehicles entering the zone on an average weekday, undermining the scheme’s aims.
Adjustments help ensure the scheme remains effective at managing road space, air quality, and congestion while continuing to encourage greener vehicles.
The fee increase (from £15 to £18) also reflects inflation and broader pressures on public transport funding post-pandemic.
According to TfL, the revision aims to strike a balance: still giving EVs some benefit via reduced charge but ensuring the Congestion Charge maintains its traffic-management purpose.
What stays the same, and where EVs still benefit
It’s important to note that the change does not mean EVs lose all benefits compared with petrol/diesel vehicles:
The charge is still lower for EVs than for conventional vehicles, a 25% discount for cars, 50% for vans/HGVs (at least initially).
Registrations under “back-to-base” car-club schemes retain special exemptions: certain EV car-club vehicles will still benefit from full or significant discounts when picked up and returned to the same bay.
From 203,0, there are further planned reductions in discount levels, giving businesses advanced visibility to plan long-term.
So while costs will rise, EVs remain somewhat advantaged versus conventional vehicles, especially for businesses able to optimise fleet usage and minimise zone entries.
Why the congestion charge matters
The Congestion Charge has undeniable benefits for the local community and the wider environment. Both city centre congestion and carbon emissions have been reduced, plus the public transport system has improved considerably thanks to the investment from this scheme.
For those who regularly travel into the Congestion Charge zone, it’s important to stay informed of any updates and changes to the scheme and make sure your fee is paid on time.
What stays the same, and where EVs still benefit
It’s important to note that the change does not mean EVs lose all benefits compared with petrol/diesel vehicles:
The charge is still lower for EVs than for conventional vehicles, a 25% discount for cars, 50% for vans/HGVs (at least initially).
Registrations under “back-to-base” car-club schemes retain special exemptions: certain EV car-club vehicles will still benefit from full or significant discounts when picked up and returned to the same bay.
From 203,0, there are further planned reductions in discount levels, giving businesses advanced visibility to plan long-term.
So while costs will rise, EVs remain somewhat advantaged versus conventional vehicles, especially for businesses able to optimise fleet usage and minimise zone entries.
Key takeaways for business owners and fleet managers
From 2 January 2026, EVs entering central London will no longer be fully exempt from the Congestion Charge except for daily fees, even for zero-emission vehicles.
The standard charge rises to £18/day, with discounts to £13.50 (cars) or £9 (vans/HGVs/quadricycles) but only for vehicles registered on Auto Pay.
Businesses will likely face increased operating costs, so re-evaluate budgets, routes, vehicle usage and fleet strategy accordingly.
Register EVs on Auto Pay now to get discounted rates.
Use the next few months to plan, optimise delivery schedules, routes and overall fleet use.
Ultimately, this update underlines that the Congestion Charge is first and foremost a traffic-management and congestion-control tool, not purely an emissions-penalty scheme. Businesses operating in or near London with EV fleets should act now to adapt, or risk surprise costs from 2026 onwards. Learn more about public EV charge cards.
Business travel tip
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Explore our range of fuel cards or give our friendly team a call at 0113 202 5110 to discuss your options.
The Congestion Charge is a fee that you must pay if you drive through central London at certain times of the day. First introduced 20 years ago, the purpose of this scheme is to reduce traffic congestion and improve air quality in urban areas.
Interested in a fuel card? Explore our fuel cards here.
