TfL runs through higher Congestion Charge and ends universal EV discount for private hire vehicles
- Perry Richardson
- 5 hours ago
- 2 min read
Transport for London (TfL) has confirmed a rise in the Congestion Charge to £18 a day and the formal end of the blanket Cleaner Vehicle Discount, tightening operating costs for private hire vehicles working in central London. The changes took effect on 2 January 2026 following a consultation held last summer.
Under the updated scheme, the daily Congestion Charge increased from £15 to £18 if paid on the day or in advance, and £21 if paid up to three days after travel. The increase applies to all chargeable vehicles entering the zone between 7am and 6pm, seven days a week except Christmas Day.
Electric vehicles, including private hire cars, are no longer exempt. Instead, TfL has introduced a new tiered Cleaner Vehicle Discount offering 25% off the daily charge for electric cars registered on Auto Pay. This reduces the daily cost to £13.50, but only for operators who ensure vehicles are correctly enrolled in the automated payment system. Electric PHVs not on Auto Pay are charged the full £18.
TfL said the previous Cleaner Vehicle Discount ended on 25 December 2025, marking a shift away from broad incentives as electric vehicle numbers increase. Since that date, all electric vehicles entering the zone have been liable for payment, with the revised discount positioned as a transitional measure rather than a permanent exemption.
Electric PHVs will now pay at least £13.50 a day in central London, with full charges applying unless vehicles are registered on Auto Pay
Private hire vehicles remain fully within scope of the charge, with one limited exception. Wheelchair-accessible PHVs retain an exemption, but only when undertaking a booking for a TfL-licensed private hire operator. Eligibility is tied to the vehicle’s licensing designation and does not apply to general use or private journeys.
By contrast, licensed London taxis continue to be exempt from the Congestion Charge while actively licensed by TfL. Vehicles lose that exemption if the taxi licence is surrendered, expires or is revoked, according to the notice issued by the regulator.
The notice also confirms a new process allowing routine annual increases to the Congestion Charge without further public consultation. Future rises may be linked to Tube fare increases, inflation plus one percentage point, or a lower amount, subject to approval by TfL and the Mayor. From March 2030, the Cleaner Vehicle Discount will be reduced further as electric vehicle volumes grow, cutting the discount for electric cars on Auto Pay to 12.5%.
