Transport for London (TfL) has put forward plans to increase the Congestion Charge to £18 a day from 2 January 2025 - a 20% rise from the current £15. This would be the first increase since 2020, when the charge went up from £11.50. The fee applies to vehicles entering central London between 7am and 6pm on weekdays and from 12pm to 6pm at weekends.

Under the new proposal, motorists would pay £18 if the charge is paid on the day of travel or in advance, or £21 if paid by midnight on the third day. Drivers failing to pay within 48 hours would be fined £180, or £90 if settled within 14 days. TfL also plans to link future increases to inflation and public transport fare changes.

Electric vehicles, which were previously exempt, will begin paying the charge from January, though those registered with Auto Pay will receive a 25% discount. Vans, HGVs, and other large vehicles will benefit from a 50% discount. From March 2030, these discounts will reduce further to 12.5% and 25% respectively. TfL also plans to simplify how electric vehicle discounts are applied by using DVLA data automatically.

The Federation of Small Businesses has criticised the rise, calling it a harsh blow for firms already facing financial pressures. Meanwhile, environmental groups have welcomed the move, saying it reinforces London’s commitment to clean air and sustainable transport. A public consultation is open until 4 August.