Congestion Charge fees to rise by £40m in 2026
Drivers in London could be hit with a £40m bill when Congestion Charge fees increase on 2 January, 2026.
Daily charges will rise from £15 to £18 at the start of next year, with analysis from online used car retailer cinch estimating that this will add £40m to the annual bill for drivers in the capital.
Drivers paid a total of £202.8m in Congestion Charges from April 2024 to March 2025, according to data revealed in a Freedom of Information (FOI) request to Transport for London.
Based on these volumes, cinch is predicting this to rise to £243m next year.
Annual increases
Ben Welham, motoring expert at cinch, said: “The £3 daily increase means a commuting driver will pay £4,500 per year in Congestion Charge fees if they drive into the capital five days a week, a hike of £750.
“Our analysis, based on 250 working days per year, highlights the heavy financial impact the increase will have on individual drivers and businesses.”
The Congestion Charge has increased by 200% since it was introduced in 2003, with further annual increases expected from 2027 onwards. Next year, additional revenues will also be generated by electric vehicle drivers, who will also be liable for the charge, although at discounted rates of between 25% and 50%.
