Two significant changes affecting drivers across the United Kingdom have officially come into force at the start of 2026, marking a costly shift for many motorists. The adjustments, which include a hike in the London Congestion Charge and a revision to the domestic energy price cap impacting electric vehicle (EV) owners, are among the first major updates to road user regulations this year.
London Congestion Charge Sees Significant Rise
One of the most substantial increases in years has been applied to the daily London Congestion Charge. As of now, the fee for driving into or through the designated central zone has risen sharply.
If paid on or before the day of travel, the charge is now £18, up from £15. For those who pay within the following three days, the cost has increased from £17.50 to £21. A critical update for eco-conscious drivers is that electric vehicle owners are no longer exempt and must now pay the charge.
However, there is a discount available. Owners of pure battery-electric vehicles who register for the Auto Pay system will receive a 25% reduction, bringing their daily charge down to £13.50. Motorists should beware: failing to pay will result in a Penalty Charge Notice of £180.
Electricity Price Cap Adjustment Affects Home Charging
Separately, EV owners are facing slightly higher costs for charging at home. The energy regulator, Ofgem, has set a new electricity price cap which took effect on 1 January 2026.
The revised cap is set at £1,758 and will remain until the end of March 2026. This represents a marginal 0.2% price increase compared to the previous period. While small, this rise will likely be felt by drivers who regularly charge their electric cars using domestic electricity supplies.
For context, the average rate for public 7kW charging points across the UK typically ranges between 45p and 53p per kWh. Setting a new tariff at 50p/kWh, as seen recently with Warrington Borough Council's initiative, keeps public charging competitive. Councils like Wakefield have subsidised such costs to encourage the switch from petrol and diesel, a policy reported to have significantly increased usage of local charging infrastructure.
What These Changes Mean for UK Motorists
According to Richard Evans, head of technical services at webuyanycar, these tweaks have immediate financial consequences. For London drivers, the cost of commuting or visiting the capital has risen noticeably. For the growing number of EV owners, the combined effect means both public and private charging involves careful budgeting.
The moves reflect broader trends in UK transport policy: managing congestion in major cities while navigating the economic factors of the transition to electric vehicles. With these two changes now active, motorists nationwide are advised to review their travel costs and payment methods to avoid unexpected charges.
