Key updates to the TfL Congestion Charge from 2nd January 2026

Driving in London comes with costs, and for PCO and Uber drivers, the Congestion Charge and Ultra Low Emission Zone (ULEZ) fees are two of the biggest. These charges affect how much you earn and how you plan your working day.

Transport for London introduced the Congestion Charge in 2003 to reduce traffic in the London city centre. Drivers pay a daily fee during busy hours. This helps lower air pollution, reduce travel time, and improve efficiency for everyone.

From late 2025 into 2026, some important changes are coming that all drivers need to know, especially if you drive an EV. Here’s what’s changing, how EVs can save you money, and tips to make the most of your time on the road.

What’s Changing in 2025–2026

Starting 2 January 2026, the Congestion Charge in central London is set to rise from £15 to £18 per day. At the same time, the Cleaner Vehicle Discount (CVD) for electric vehicles will end on 25 December 2025. That means all EVs will become liable for the Congestion Charge.

But there is good news, a new discount for EVs will be introduced. Electric cars registered with Auto Pay will pay 25% less — £13.50 on the new £18 daily fee. Electric vans and HGVs get 50% off.

Even with these changes, driving an EV is still cheaper than a hybrid or petrol car. Fully electric cars are exempt from the ULEZ charge, and charging at home or approved stations costs far less than petrol or diesel. For PCO drivers, this can mean hundreds in weekly savings.

Uber drivers in London benefit from new EV discounts and congestion surcharges.

Tip: To make the daily Congestion Charge worthwhile, plan to take trips inside the zone — Uber adds a £1.50 surcharge per trip that starts, ends, or passes through it.

Why EVs are STILL the Smart Choice

Switching to an EV isn’t just about avoiding ULEZ fees. It’s about saving on multiple costs that add up for PCO drivers. When you drive electric:

• You pay less for fuel. Charging is cheaper than petrol and more predictable for budgeting.

• With a Splend EV, your weekly payment covers everything: servicing, damage & loss cover, Car Tax & MOT, and maintenance.

• You can focus on driving and earning, without worrying about hidden costs.

Popular options like the Toyota bZ4X, MG5 Long Range and Volkswagen ID.4 are perfect for PCO drivers.

Tip: Home charging can potentially save you hundreds per week, making EVs even more cost-effective for your PCO work.

Congestion Charge: The Details

For those who need a refresher: the Congestion Charge is a daily fee for driving in central London.

• Current charge: £15/day

• Proposed (from Jan 2, 2026): £18/day

• Charge hours:

  • Weekdays: 7:00 am – 6:00 pm

  • Weekends & bank holidays: 12:00 pm – 6:00 pm

• No charge: Christmas Day to New Year’s Day

• Other notes: Blackwall & Silvertown tunnels have separate charges. ULEZ runs 24/7 except Christmas Day.

Tip: Use navigation apps like Waze or Google Maps to avoid accidentally entering the zone. Auto Pay can help prevent late payments.

Understanding these charges and planning your driving can make a real difference to your weekly earnings, especially if you choose an EV from Splend’s all-inclusive fleet.

ULEZ vs Congestion Charge

The Congestion Charge is all about reducing traffic in central London during busy hours. ULEZ, on the other hand, is focused on cutting pollution across all 33 London boroughs, operating 24/7.

If you drive with Splend, all our EVs are ULEZ-compliant, so you never need to pay this charge. This is another reason why EVs are the smart choice for PCO drivers in London.

Tips to Make the Most of Driving in London

• Plan trips in the zone: Maximise earnings with the Uber £1.50 surcharge.

• Drive outside charge hours: Weekdays 6:00 pm – 7:00 am; weekends 6:00 pm – 12:00 pm.

• Know the zone boundaries: Navigation apps can help avoid accidental fees.

• Include EV charges in planning: From 2026, factor in the new EV daily fee.

• Consider home charging: It reduces fuel costs and makes EVs even more profitable.

Navigating London as a PCO driver can feel complicated with all the charges and rules, but understanding the Congestion Charge and ULEZ updates for 2025–2026 puts you in control of your earnings. Choosing an electric vehicle from Splend not only keeps you compliant with new regulations but also helps you save on fuel, avoid ULEZ fees, and enjoy all-inclusive weekly payments. With careful planning, smart route choices, and the right EV, driving in London can be simpler, more profitable, and less stressful than ever.

FAQ's about the TfL Congestion Charge

1. How much is the charge? Standard rate (pay in advance or on the same day): currently £15. Proposed £18 from January 2, 2026. Late payment (by midnight of the third charging day after travel currently £17.50. Proposed £21 from January 2, 2026 

2. What are the congestion times? The London Congestion Charge times are: 

   Monday to Friday - between 7:00 am and 6:00 pm 

   Saturday, Sunday, bank holiday - between 12:00 pm and 6:00 pm 

   No charge between Christmas day and new years day bank holiday inclusive 

   Blackwall and Silvertown tunnels charge: 06:00-22:00 every day of the year, except Christmas day (25 December) 

   ULEZ: operates 24 hours a day, every day of the year, except Christmas day (25 December) 

3. Is there a charge on the weekend? Yes. During the weekend, the Congestion Charge must be paid between 12:00 pm and 6:00 pm, both on Saturday and Sunday. 

4. Do I need to pay the Congestion Charge on a bank holiday?  Yes. The Congestion Charge applies even if you're driving in London on bank holidays, between 12:00 pm and 6:00 pm. The only time there is no charge is between Christmas day and New Year’s Day bank holiday (included). 

5. How do I pay the Congestion Charge online? If you're a Splend customer, we process all payments for you. If you drive your own car, you can use the following methods: 

   Online – from your London road user charging account. 

   Via the TfL pay to drive in London app - you can use the app to pay the Congestion Charge, Blackwall and Silvertown tunnels charge, ULEZ, and low emission zone (lez) charges. 

   By phone - call TfL pay to drive in London service on 0343 222 2222. 

   Via auto pay – TfL’s automated payment system, for an annual registration fee of per car. This system automatically checks for charges and bills your nominated card, preventing late payment penalties. 

6. What if I forget to pay the Congestion Charge? If you don't pay the Congestion Charge by midnight on the third day after you entered the charging zone, TfL will issue a £180 PCN (Penalty Charge Notice). You can pay the penalty within 14 days to receive a 50% discount. If you miss the deadline, the penalty will increase by 50% to £270. 

7. Where is the Congestion Charge zone? The Congestion Charge zone covers central London approximately from Vauxhall to Clerkenwell and from Marylebone to Southwark. The area is enclosed by major roads like Marylebone rd., Euston rd., tower bridge rd., and Park Ln. 

8. Do hybrid cars pay the Congestion Charge? Yes. Since October 2021, hybrid vehicles (including plug-in hybrids) are required to pay the full daily Congestion Charge. Only pure battery electric or hydrogen fuel cell vehicles have qualified for a discount (see below).