London congestion charge
The London congestion charge is a fee charged on most cars and motor vehicles being driven within the Congestion Charge Zone (CCZ) in Central London between 7:00 am and 6:00 pm Monday to Friday, and between 12:00 noon and 6:00 pm Saturday and Sunday. Enforcement is primarily based on automatic number-plate recognition (ANPR).
Overview
The London congestion charge is a fee charged on most cars and motor vehicles being driven within the Congestion Charge Zone (CCZ) in Central London between 7:00 am and 6:00 pm Monday to Friday, and between 12:00 noon and 6:00 pm Saturday and Sunday. Enforcement is primarily based on automatic number-plate recognition (ANPR). Inspired by Singapore's Electronic Road Pricing (ERP) system after London officials had travelled to the country, the charge was first introduced on 17 February 2003. The London charge zone is one of the largest congestion charge zones in the world, despite the removal of the Western Extension which operated between February 2007 and January 2011. The charge aims to reduce traffic volumes in central London, lower air and noise pollution, and generate revenue for investment in the city's transport system. The amount and structure of the charge have changed over time. As of 2025 the standard charge was £15, Monday–Friday from 7:00 am to 6:00 pm, and 12:00 noon to 6:00 pm on Saturday and Sunday (and Bank Holidays), for each non-exempt vehicle driven within the zone, with a penalty of between £65 and £195 levied for non-payment. The standard charge increased to £18 from 2 January 2026, with annual increases in line with public transport fares and removal of some exemptions. The congestion charge does not operate from Christmas Day (25 December) and New Year’s Day (1 January) inclusive. In July 2013 the Ultra Low Emission Discount (ULED) introduced more stringent emission standards, which limit free access to the congestion charge zone to all-electric cars, some plug-in hybrids and any vehicle that emits 75 g/km or less of CO2 and meets the Euro 5 standards for air quality. On 8 April 2019, the Ultra Low Emission Zone (ULEZ) was introduced, which applies 24/7 to vehicles which do not meet the emissions standards: Euro 4 standards for petrol vehicles, and Euro 6 or VI for diesel and large vehicles. In October 2021 the ULEZ was expanded to cover the Inner London area within the North and South Circular Roads, and in August 2023 to all of Greater London. The ULEZ replaced the T-charge (toxicity charge), which applied to vehicles below Euro 4 standard. Since 2021 the congestion charge exemption has applied only to pure electric vehicles; from January 2026 electric vehicles have been subject to the charge, with a 25% discount on the full rate if they autopay. Transport for London (TfL) is responsible for the charge, which has been operated by IBM since 2009. For the first ten years after the introduction of the scheme gross revenue reached about £2.6 billion up to the end of December 2013. From 2003 to 2013 about £1.2 billion was invested in public transport, road and bridge improvement and walking and cycling schemes. Of these, a total of £960 million was invested on improvements to the bus network. Introduction of congestion charging was followed by a 10% reduction in traffic volumes from baseline conditions, and an overall reduction of 11% in vehicle kilometres in London between 2000 and 2012, though this does not prove that the reductions are due to the congestion charge. Despite these gains, traffic speeds have been getting progressively slower, particularly in central London. TfL explains that the historic decline in traffic speeds is most likely due to interventions that have reduced the effective capacity of the road network in order to improve the urban environment, increase road safety and prioritise public transport, pedestrian and cycle traffic, as well as an increase in roadworks by utilities and general development activity since 2006. TfL concluded in 2006 that, while levels of congestion in central London were close to levels before the charge was implemented, its effectiveness in reducing traffic volumes means that conditions would be worse without the congestion charging scheme, though later studies emphasise that causality has not been established.
Boundary
The current congestion charge zone covers the area within the London Inner Ring Road which includes both the City of London, which is the main financial district, and also the West End, which is London's primary commercial and entertainment centre. Although primarily a commercial area, there are also 136,000 residents, out of a total Greater London population of almost 9,000,000. There is little heavy industry within the zone. Starting at the northernmost point and moving clockwise, the major roads defining the boundary are Pentonville Road, City Road, Old Street, Commercial Street, Mansell Street, Tower Bridge Road, New Kent Road, Elephant and Castle, Kennington Lane, Vauxhall Bridge Road, Park Lane, Edgware Road, Marylebone Road and Euston Road (other roads fill the small gaps between these roads). Signs were erected and symbols painted on the road to help drivers recognise the congestion charge area. The Western Extension, introduced in February 2007 and removed on 4 January 2011, included areas surrounded by the following roads starting from the north-westernmost point: Scrubs Lane, Harrow Road, Westway (part of the A40), Park Lane, Vauxhall Bridge Road, Grosvenor Road, Chelsea Embankment, Earl's Court Road and part of the West Cross Route (A3220), but the Westway itself was not part of the zone.
Charges
Charges change (usually increase) and conditions and exemptions change from time to time. Current charges are listed on the official Web site. In January 2013, Transport for London opened a public consultation to increase the standard charge by 15% by mid 2014, from £10 per day to £11.50, if paid in advance or on the day. The increase was expected to generate an estimated £84 million of additional revenue by the end of 2017/18. The consultation process ran from January 2014 to March 2014. According to TfL, the objective of the increase was to recoup inflation over the past three years and ensure the charge remains an effective deterrent to making unnecessary journeys in central London. On 15 May 2020, the Congestion Charge was re-implemented following a period of suspension during the COVID-19 pandemic.
Fees and penalties
In June 2020 the penalty charges became: The standard fee is £15 per day if paid in advance, by midnight on the day of travel, or if registered with Fleet Auto Pay or CC Autopay, an automated payment system which records the number of charging days a vehicle travels within the charging zone each month and bills the customer debit or credit card each month, or £17.50 if paid by midnight the third day after travel. Failure to pay after the third day after travel results in the issuance of a Penalty Charge Notice for £160, reduced to £80 if paid within 14 days, but increased to £240 if unpaid after 28 days. The standard charge increased to £18 from 2 January 2026, with annual increases in line with public transport fares, and removal of some exemptions.
Discounts and exemptions
Refunds are available to people who pay monthly or annually in advance whose plans change. Reimbursements are available to NHS patients assessed to be too ill to travel by public transport, NHS staff using vehicles on official business, and care home employees. Residents living within or very close to the zone are eligible for a 90% discount which is charged via CC Autopay. Until 2021, the system gave 100% discounts to registered cars which emit 75 g/km or less of carbon dioxide and meet the Euro 5 emission standard, vehicles with nine or more seats, motor-tricycles, two-wheeled motorcycles (and sidecars), mopeds, accredited breakdown companies, and roadside recovery vehicles. All-electric vehicles (BEVs) and eligible plug-in hybrid electric vehicles (PHEVs) qualify for a 100% congestion charge discount until 2026, when they will pay the full charge, with a 25% discount if registered for autopay. A plug-in electric drive vehicle qualifies if the vehicle is registered with the Driver and Vehicle Licensing Agency (DVLA) and has a fuel type of "electric", or alternatively, if the vehicle is a "plug-in hybrid" and is on the government's list of PHEVs eligible for the OLEV grant. Wheelchair-accessible taxis and private hire vehicles (PHVs) are exempt from the charge; until April 2019 all PHVs were. As of September 2025, TfL gave exemptions or discounts to the groups below:
End of greener vehicle discount
In November 2012, TfL presented a proposal to end the greener vehicle discount that benefited mainly vehicles with small diesel engines, that avoid the charge because their engines produce emissions of less than 100 g/km of CO2. The proposal was approved by Mayor Boris Johnson in April 2013 and the ultra low emission discount (ULED) went into effect on 1 July 2013. The ULED introduced more stringent emission standards that limit the free access to the congestion charge zone to all-electric cars, some plug-in hybrids, and any car or van that emits 75 g/km or less of CO2 and meets the Euro 5 emission standards for air quality. As of July 2013, there are no internal combustion-only vehicles that meet these criteria. The measure was designed to curb the growing number of diesel vehicles on London's roads. About 20,000 owners of vehicles registered for the greener vehicle discount by June 2013 were granted a three-year sunset period before they have to pay the full congestion charge. Other changes were the removal of the option to pay the charge in shops, and the penalty charge was increased to £10. The sunset period ended on 24 June 2016. In December 2018, a further tightening of the standards was announced, in part to bring standards beyond that of the ULEZ. This means that since April 2019 only vehicles which are Euro 6, emit up to 75 g/km of CO2 and have a minimum 20-mile (32 km) zero emission range have qualified for the discount. A further phase from October 2021 will mean that only zero-emission vehicles (pure electric vehicles and hydrogen fuel cell vehicles) can qualify, and the discount will be phased out completely from December 2025.
T-Charge emissions surcharge
An emissions surcharge, known as the toxicity charge or T-Charge, was introduced on 23 October 2017. It operated for the same hours as the congestion charge (7:00 am to 6:00 pm on weekdays). Older cars and vans that did not meet Euro 4 standards had to pay an extra £10 charge on top of the congestion charge to drive in central London, within the congestion charge zone (CCZ). The charge typically applied to diesel and petrol vehicles registered before 2006, and the levy affected up to 10,000 vehicles. The public consultation on the T-Charge proposals began in July 2016. London Mayor Sadiq Khan announced the introduction of the scheme on 17 February 2017 after London achieved record air pollution levels in January 2017, and the city was put on a high pollution alert for the first time ever, as cold and stationary weather failed to clear toxic pollutants emitted mainly by diesel vehicles. In December 2017, TfL said that the charge had cut the number of non-compliant vehicles by around 1,000 per day, with the remaining 2,000 paying the £10 charge (a further 3,000 vehicles are eligible for discounts due to Blue Badges etc.). The T-Charge was replaced by the ultra low emission zone (ULEZ) on 8 April 2019. For the ULEZ sunset period the T-Charge was still levied for uncompliant vehicles on holders of the residents' discount.
Ultra Low Emission Zone
The ULEZ went into effect in April 2019 and replaced the T-Charge. It initially covered the same area as the T-Charge and the Congestion Charge Zone but applies 24/7, every day of the year (except Christmas Day), with charges of £12.50 a day for cars, vans and motorcycles, and £100 a day for lorries, buses and coaches. The ULEZ caused a 20% reduction in emissions and resulted in a drop of non compliant vehicles entering the zone each day from 35,578 to 23,054. The zone was extended to the North Circular and South Circular roads in October 2021 and was extended to the whole of Greater London from 29 August 2023.
Suspensions, avoidance and evasion
TfL can and does suspend the congestion charge either in a small local area to cope with incidents and if directed to do so by a police officer. The congestion charge was suspended on 7 and 8 July 2005 in response to the terrorist attacks on London Transport. The congestion charge was also suspended on 2 February 2009, in response to an extreme weather event (heavy snowfall) in the London area. Although avoidance has become more sophisticated, compliance with the scheme and terms of payment has improved over the last few years, as is evidenced by the income from penalties dropping by approximately a quarter between 2005 and 2007. However, even after charges were increased, enforcement charges still made up a significant proportion (42–48%) of total revenues. The 2008 annual report on the operation of the scheme shows that around 26% of penalties go unpaid, because the notice is cancelled on appeal or the amount cannot be recovered, for example if the registered keeper of the vehicle cannot be traced, has died, or is bankrupt. Several newspapers have reported about the use of copied number plates to avoid the congestion charge, resulting in vehicle owners receiving penalty notices for failure to pay when their vehicles have not been inside the zone. Numbers known to be copied are stored in a database and trigger alerts, including police vehicle ANPR camera alerts, when observed in use.
Payment by embassies
Following pressure from the Mayor of London, an increasing number of embassies accepted the charge and by 2008 a total of 99 out of 128 embassies had agreed to the charge. Among others, decliners include Germany, Japan, Russia and the United States, who, by 2015, collectively owed £95 million. The United States and Germany are reported to consider it to be a local tax, from which they are protected by the Vienna Convention, rather than a toll. In May 2011, Johnson raised the issue with the President of the United States, Barack Obama, against whom a fine of £120 was issued after driving through London in the Presidential state car without paying the toll during a state visit to Buckingham Palace. The United States subsequently claimed diplomatic immunity. A TfL spokesperson noted that US embassies do pay tolls in Oslo and Singapore. In 2024 Transport for London estimated that, by the end of 2023, £143 million was owed by foreign embassies in London: since the charge was introduced in 2003, the US Embassy owed the most with £14.6 million, followed by legations of Japan at £10 million, India with £8.5 million, and Nigeria with £8.4 million.
Background
The government's Smeed Report of 1964 was the first full assessment of the practicality of road pricing in a British city on the basis of congestion. It recommended a method of "car user restraint" by a variable system of charging for road usage – if the government had the will to do so. During the early years of the Greater London Council, which was formed in 1965, the first plans were drawn up for a system of cordon charging or supplementary licensing for use in the central area. A formal study was undertaken into the merits of the scheme, and in 1973 concluded that it would improve traffic and environmental conditions in the centre. These plans were being developed at the same time as the London Ringways, a series of four orbital motorways around and within London including Ringway 1 (the London Motorway Box) leading to widespread public protest by Homes before Roads and others. Only a small section of these road schemes had been implemented by the time Labour gained control in the 1973 Greater London Council elections, and the new administration abandoned the road building plans in favour of public transport and traffic management. The new administration, to which Ken Livingstone had just been elected for the first time, studied a congestion scheme similar to the one which was eventually adopted the following year.
Planning and preparation
In 1995, the London Congestion Research Programme concluded that the city's economy would benefit from a congestion charge scheme, the Road Traffic Reduction Act 1997 required local authorities to study and reduce traffic volumes and any future London mayors were given the power to introduce "Road user charging" by the Greater London Authority Act 1999. In his manifesto for the 2000 London Mayoral election, Ken Livingstone had proposed to introduce a £5 charge for vehicles entering central London. Following his victory, the Mayor made a draft order and requested a report from TfL, which summarised the reasons for introducing the scheme. The scheme was to be introduced to reduce congestion in the centre of the capital following the Draft Transport Strategy of January 2001 which had highlighted the importance that the Mayor placed on tackling this issue. The charge was to be part of a series of measures to improve the transport system in London and was to combined with public transport improvements and increased enforcement of parking and traffic regulations. The report stated that the scheme was expected to be the most effective in reducing through traffic, reducing congestion both within and outside the zone, improving the speed of buses and the quality of life in central London. It was stated that improved traffic flows would make London more attractive to business investment. Substantial net revenues were anticipated, which were to be invested in London's transport system. It also states that 90% of those who responded to a consultation on the scheme, viewed reducing traffic congestion in central London as 'important'. In July 2002, Westminster City Council launched a legal challenge against the plans, arguing that they would increase pollution and were a breach of human rights of residents on the boundary of the zone. The High Court rejected the claim. The London Ambulance Service (LAS) anticipated increased volumes of traffic around the edge of the zone and an increase in demand within the zone, that might both adversely affect clinical outcomes. Before the charge's introduction, there were fears of a very chaotic few days as people got used to the new situation. Indeed, Ken Livingstone, then Mayor of London and key proponent of the charge, himself predicted a "difficult few days" and a "bloody day". On introduction, the scheme was the largest ever undertaken by a capital city.
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