Congestion Charge
London Congestion Charge: A Guide for Fleet Operators
The London Congestion Charge is a daily road-user charge designed to reduce traffic within central London. Businesses operating cars, vans or other fleet vehicles in London should understand the charging area, operating hours and available discounts.
The Congestion Charge is separate from the Ultra Low Emission Zone (ULEZ). Depending on the vehicle, both charges may apply on the same journey.
Questions you may ask:
What is the current charging scheme?
Are there new proposed changes to congestion charging?
Is there new environmental charges due?
How does it work?
How much is the London Congestion Charge?
The standard charge is:
- £18 per day when paid in advance or on the day of travel.
- £21 per day when paid by midnight on the third day following travel.
The charge applies when a vehicle is driven within the Congestion Charging Zone during operating hours. It is not based on how long the vehicle remains within the zone or how many journeys it makes that day.
TfL Auto Pay can automatically identify chargeable journeys and collect the correct payment, reducing the risk of missed payments and penalty notices.
When does the Congestion Charge operate?
Charging hours are:
- 7am to 6pm, Monday to Friday.
- 12pm to 6pm on Saturdays, Sundays and bank holidays.
The charge does not operate between Christmas Day and the New Year’s Day bank holiday, inclusive.
Do electric vehicles pay the Congestion Charge?
Yes. The previous 100% Cleaner Vehicle Discount ended in December 2025.
Electric vehicles registered for TfL Auto Pay currently receive the following discounts:
| Vehicle | Discount | Daily Charge |
| Electric Car | 25% | £13.50 |
| Electric van | 50% | £9.00 |
Electric HGV (or Quadricycle) | 50% | £9.00 |
Eligible vehicles must be registered for Auto Pay. Otherwise, the full £18 charge applies.
From 4 March 2030, the electric-car discount is scheduled to reduce to 12.5%, while the discount for electric vans, HGVs and quadricycles will reduce to 25%.
Is the Congestion Charge the same as ULEZ?
No. The two schemes have different purposes and cover different areas.
The Congestion Charge manages traffic in central London. ULEZ is an emissions-based charge covering almost all London boroughs. ULEZ operates 24 hours a day, every day except Christmas Day.
Cars and light vans that do not meet the required emissions standards normally pay a £12.50 daily ULEZ charge. This is in addition to the Congestion Charge where both apply.
As a general guide, the minimum ULEZ standards are:
- Euro 4 for petrol cars and vans.
- Euro 6 for diesel cars and vans.
- Euro 3 for motorcycles.
Fleet operators should use TfL’s vehicle checker because eligibility is determined from the vehicle’s recorded emissions information rather than age alone.
Clean Air Zones outside London
Several English cities operate Clean Air Zones. These include Bath, Birmingham, Bradford, Bristol, Portsmouth, Sheffield and Tyneside.
The vehicles affected and daily charges vary by city. Some zones charge cars, while others apply only to commercial vehicles, taxis, buses or HGVs. Businesses operating across several regions should maintain accurate vehicle records and use the government’s multiple-vehicle checking service.
Nottingham also operates a Workplace Parking Levy. For 2026/27, employers providing 11 or more liable workplace parking places pay £592 per space per year. Nottingham City Council
Managing road-user charges across a fleet
Fleet operators should:
- Register eligible vehicles for TfL Auto Pay.
- Check ULEZ and Clean Air Zone compliance before allocating vehicles.
- Maintain accurate registration and emissions data.
- Include road-user charges in whole-life-cost and route-planning decisions.
- Establish clear responsibility for paying charges incurred by company-car and van drivers.
- Review penalty notices and charging data regularly.
LetsTalk Fleet can help businesses assess the cost and operational impact of congestion charging, Clean Air Zones and changing vehicle-emissions requirements.
The information provided is based on existing and proposed legislation as at 25th August 2026. Whilst every effort has been made to ensure that information given is accurate and not misleading, this information is intended to provide a quick reference to the current tax regulations relating to company vehicles and how they impact employers and employees. The content has been provided for informational purposes only and should not be relied on as a substitute for professional advice. No responsibility can be accepted by LetsTalkFleet Ltd for any loss or liability occasioned by any person acting on or refraining from action as a result of viewing this information.
