London Drivers Face Annual Congestion Charge and Tunnel Toll Increases Until 2030
Road users in London are set to experience above-inflation annual price hikes for the Congestion Charge and major tunnel tolls until the end of the decade, according to recent warnings from Transport for London (TfL).
Details of the Planned Increases
The central London Congestion Charge, which rose by 20 percent from £15 to £18 in January, is projected to increase annually based on the Retail Price Index (RPI) plus 1 percent starting in 2027. This adjustment aligns with TfL's planning assumptions for public transport fares.
Similarly, tolls for the Blackwall and Silvertown tunnels are expected to follow the same pattern of annual increases. However, these assumptions do not apply to the Ultra Low Emission Zone (Ulez), which remains unaffected by the changes.
Impact on Electric Vehicle Drivers
A significant shift in policy has seen electric vehicles lose their 100 percent exemption from the Congestion Charge. As a result:
- Drivers of electric vans and lorries now pay £9 per day.
- Battery-powered cars, including minicabs, are charged £13.50 per day.
This change has exposed thousands of motorists to charges for the first time, marking a notable departure from previous incentives for eco-friendly vehicles.
Financial Context and Decision-Making
Patrick Doig, TfL's new finance chief, emphasized that these increases are based on planning assumptions tied to the Government's capital funding settlement from June 2025, which provided TfL with £2.2 billion in investment. He stated, "The actual TfL fares will be a decision for the mayor," noting that final decisions will undergo impact assessments and mayoral approval.
TfL's budget documents highlight a £1.6 billion shortfall as a persistent financial challenge, driving the need for revenue adjustments through toll and charge increases.
What This Means for Drivers
With the Congestion Charge now costing £18 for same-day or advance payments—a £3 rise from previous rates—and annual hikes planned, London drivers must prepare for escalating costs. The move reflects TfL's strategy to address funding gaps while managing urban congestion and emissions, albeit with reduced benefits for electric vehicle owners.
