TfL proposes increasing Congestion Charge to £18 with limited relief for private hire vehicles
- Perry Richardson
- 9 hours ago
- 2 min read
Transport for London (TfL) has launched a public consultation proposing changes to the Congestion Charge, including a rise from £15 to £18 in 2026. While taxis remain exempt, the proposals will have a direct financial impact on many private hire vehicle (PHV) drivers operating in central London.
TfL aims to reduce congestion further and promote the switch to electric vehicles and public transport. The new charge would come into force from 2 January 2026, marking the first price increase in five years.
For taxi drivers, there are no immediate changes to current exemptions. Licensed taxis will continue to be exempt from both the Congestion Charge and the charges for the Blackwall and Silvertown tunnels, as long as the vehicle remains on the licensed register with London Taxi and Private Hire (TPH). Once a vehicle’s licence ends or is revoked, its exemption also ends.
PHV drivers face a different scenario. These vehicles are not exempt from the Congestion Charge or the new tunnel charges. This means that PHV operators working in central London during charging hours will continue to incur daily fees.
A limited exemption remains for wheelchair-accessible PHVs, but only when carrying out a booking. Additionally, zero-emission capable PHVs will be exempt from the Blackwall and Silvertown tunnel charges when booked, but they will still be required to pay the Congestion Charge unless they qualify for a discount.
From January 2026, TfL proposes a revised Cleaner Vehicle Discount (CVD). Electric vans and HGVs would receive a 50 per cent discount, while electric cars — which include many PHVs — would receive only 25 per cent. These discounts will be halved again by 2030, down to 25 per cent for vans and 12.5 per cent for electric cars. Discounts will apply automatically through DVLA data, but only for vehicles registered with Auto Pay.
Further proposals include linking annual increases in the Congestion Charge to Tube fare inflation or other indices, which could lead to regular charge hikes in future years.
TfL argues these changes are necessary to prevent an estimated increase of 2,200 vehicles per weekday in the zone if no action is taken after the current discount ends in December 2025.
The consultation runs until 4 August 2025, with industry bodies likely to scrutinise the impact on small PHV operators and independent drivers, particularly around the limited support for those not yet able to invest in electric vehicles.
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."
