London Congestion Charge to Rise and New Driving Laws Take Effect

Starting from January 2, 2026, the London Congestion Charge will increase from £15 to £18. This adjustment is part of a broader set of six new driving laws and rules that will take effect this month, significantly impacting road users in London and beyond. The first change begins today, marking a notable shift in the capital’s approach to managing traffic congestion.

The increase in the Congestion Charge is the first since June 2020, when the fee rose from £11.50. According to Transport for London (TfL), the changes aim to discourage thousands of drivers from using London’s roads during weekdays. Additionally, electric vehicles (EVs) will lose their exemption from the charge; for the first time, EV drivers will be required to pay. However, those who register for the Auto Pay system can apply for a 25% discount. Electric vans, heavy goods vehicles (HGVs), and quadricycles registered under the same system will receive a 50% discount.

Christina Calderato, TfL’s Director of Strategy, emphasized the importance of managing traffic to maintain a thriving city. She stated, “If we want to ensure that London remains a thriving city for everyone to enjoy, then it’s vital that traffic and congestion is kept under control and managed effectively.”

In addition to the Congestion Charge changes, Sadiq Khan, the Mayor of London, is considering plans to pedestrianize the busy Oxford Street shopping district. This initiative follows a consultation conducted by TfL, aimed at creating safer and more accessible public spaces for shopping and dining.

Digital driving licences are also on the horizon. Announced by Peter Kyle, the Labour Party’s Science Secretary, a mobile driver’s licence will be introduced as part of the GOV.UK Wallet later this year. This digital document will allow individuals to verify their age in stores and online.

A new initiative called Fuel Finder is set to launch early next year, providing drivers access to near-real-time fuel pricing data through apps and navigation systems. The government has tasked the Competition and Markets Authority (CMA) with ensuring compliance with these new regulations.

The UK government is also pushing towards electric motoring with the ongoing implementation of a Zero Emission Vehicle (ZEV) mandate. By the end of 2026, manufacturers must ensure that 33% of car sales and 24% of van sales are electric, reinforcing the transition to cleaner vehicles.

Alongside these changes, the revised price cap for electricity will come into effect on January 1, with a new cap of £1,758 remaining in place until the end of March. This adjustment signifies a 0.2% rise in electricity prices, affecting households and the growing number of drivers who charge their electric vehicles at home.

These developments represent significant changes in traffic management and transportation policy in London, aiming to mitigate congestion, promote cleaner vehicles, and support the transition to a more sustainable future.