Congestion Charge costs to be scrapped just days before Sadiq Khan's huge daily price hike

However, drivers will be spared the expensive daily charge between Christmas Day and New Year's Day bank holiday, with no need to pay from December 25 to January 1.

The Ultra Low Emission Zone will also not operate on Christmas Day, with drivers travelling through the Blackwall and Silvertown tunnels also escaping fees.

On January 2, 2026, the Congestion Charge will increase from £15 to £18 if paid on the day of travel or in advance.

If they pay within three days after travelling into the Congestion Charge, they will also see costs rise from £17.50 to £21.

Another major change overseen by Transport for London will result in electric vehicle owners paying the levy for the first time, as the Cleaner Vehicle Discount will be scrapped.

Electric cars registered with the Auto Pay feature will pay £13.50 every day, based on a 25 per cent discount.

Owners of electric vans, HGVs, and quadricycles will benefit from a larger discount of 50 per cent, resulting in a daily charge of £9.

These discounts will remain in place until March 4, 2030, when electric cars will keep a 12.5 per cent discount, and vans, HGVs and quadricycles will keep a 25 per cent drop.

The new Cleaner Vehicle Discount will be available for motorists to ensure zero emission vehicle drivers keep some benefits.

Data from Transport for London warned that without the changes, there could be more than 2,000 additional vehicles driving during operational hours on an average weekday.

In 2024, vehicle congestion in the capital cost London £3.85billion, at an average of £942 per driver, highlighting the need for changes to be made.

Commenting on the changes, Mayor Sadiq Khan said: "Keeping London moving by reducing congestion is vital for our city and for our economy.

"While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

"We must support Londoners and businesses to use more sustainable travel, so I'm pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles, as we work to build a greener and better London for everyone."

Since the Cleaner Vehicle Discount was introduced in 2019, the number of electric vehicles in the capital has risen almost sixfold.

There were 116,000 EVs registered in London at the start of the year, with clean vehicles accounting for almost 20 per cent of all vehicles in the Congestion Charge zone.

Christina Calderato, TfL's Director of Strategy, said traffic needed to be kept under control to ensure London "remains a thriving city".

"The changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport," she added.