London Congestion Charge zone: everything you need to know

Introduced in 2003, the London Congestion Charge Zone was developed as a traffic management system in the heart of one of the world's busiest cities. Now over 20 years old, the scheme still operates to reduce traffic congestion, improve air quality, and encourage the use of public transportation in central London. 

Covering an area of approximately 13 square miles, the zone encompasses key districts such as the City of London, the West End, and parts of inner London. The Congestion Charge has sparked debates, shaped traffic patterns, and inspired similar initiatives in cities around the globe. Whether or not you’re for or against the Congestion Charge, one thing’s for sure - there’s no avoiding it if you travel by car or van into Central London. 

In this article dedicated to the Congestion Charge zone in London, we explain everything you need to know about the scheme and explore the rumours that a new ‘pay as you go’ system could be introduced at some point in the near future. Read on to find out more…

Key takeaways of the article:

• London’s Congestion Charge Zone was launched in 2003
• For over 20 years the scheme has been operated by Transport for London (TfL)
• It covers approximately 13 square miles across Central London monitored by ANPR cameras
• The zone is active 7am-6pm Monday to Friday and 12pm-6pm at the weekends and on bank holidays 
• Road signs indicate that drivers are entering a Congestion Charge Zone
• Vehicles that don’t meet the zone’s zero emissions standards are charged a £15 daily fee to enter
• Failure to pay fees result in a penalty charge notice (PCN) 
• Electric cars are exempt from paying the charge until 2025
• London residents are eligible for a 90% discount when using their vehicles

What is the Congestion Charge zone in London?

A pioneering move back in 2003, London's Congestion Charge was the first scheme of its kind in the UK which brought about major changes to motorists in the city. Designed to reduce the amount of vehicles travelling into Central London, drivers are charged to enter the zone with the overall aim of encouraging residents and visitors to use public transport, or cycle instead. 

Also referred to as the ‘C-Charge’, the scheme is run by Transport for London (TfL) and operates in Central London between 7am and 6pm Monday to Friday, and between 12pm until 6pm at the weekends, as well as bank holidays.

The only days the London Congestion Charge is not applicable is on Christmas Day and New year’s Day.

How much is the London Congestion Charge?

The daily fee to enter the London Congestion Charge zone is £15 and only needs to be paid once per day, no matter how many times you drive in and out of the zoned area during the same 24-hour period. However, the £15 charge is only applicable if paid for in advance or on the day itself. If not, the fee increases to £17.50 which needs to be paid for by midnight of the third day after travel. Failure to pay the fee by midnight on the third day of travel will result in a Penalty Charge Notice (PCN) of up to £500. 

Where is the London Congestion Charge zone?

The Congestion Charging zone covers most areas within Central London, as shown in the map courtesy of TfL, below. These areas include:

• Barbican
• Bloomsbury
• Borough
• Charing Cross
• City of London
• Clerkenwell
• Covent Garden
• Euston
• Finsbury
• Holborn
• Lambeth
• Marylebone
• Mayfair
• Newington
• Soho
• Southwark
• St. Pancras
• Waterloo
• Westminster 

How do I know if I’ve entered the London Congestion Charge zone?

The areas bordering the Congestion Charge zone in London are signposted by TfL stating that you are entering a Congestion Charging zone; this is marked by the letter C set in a large red circle. 

The signs also highlight that you are driving into a Central ZONE and will advertise when the charges are applicable (days and times). 

Monitored by a network of Automatic Number Plate Recognition (ANPR) cameras, this type of technology automatically reads the registration plate of your vehicle. This means that when entering the Congestion Charge zone, there are no physical barriers or tolls to pass. As such, you will need to remember to pay the daily charge online.

How do I pay the London Congestion Charge?

The only way to pay the London Congestion Charge is online via TfL’s secure system. You can access the link and pay to drive in London here. You will need to enter your number plate details to be issued with the payment you’ll need to make.

If you’re a regular driver to Central London then TfL advises that the easiest way to make payment is via the free Auto Pay app. The Auto Pay app will also allow you to pay Ultra Low Emission Zone (ULEZ) and Low Emission Zone (LEZ) charges too. 

To find out more about ULEZ and where the zone will expand to on the 29th August 2023, read our ULEZ expands across Greater London article which explains the scheme in more detail.

Who has to pay the Congestion Charge in London?

Any driver of a vehicle that is not classed as ‘exempt’ from paying the London Congestion Charge will need to pay the daily fee.  

Do electric cars pay the London Congestion Charge?

If you own an electric car then you’ll be rewarded by being exempt from paying the London Congestion Charge. This perk is currently in place until December 2025 when it will be subject to review.

At present, hybrid cars are not exempt, so you’ll need to pay the daily £15 charge when driving within the zone.      

What vehicles are exempt from the London Congestion Charge?

In some circumstances, the Congestion Charge in London won’t be applicable. This is the case if you drive a vehicle that falls into one of the categories below:

• Most 100% electric cars
• Motorbikes and mopeds (including those with sidecars) 
• Vehicles for the emergency services, such as police cars, ambulances and fire engines
• Vehicles that are registered for NHS use 
• Vehicles that are for disabled use
• Taxis that are licensed as a London Taxi and Private Hire (TPH) vehicle
• HM Coastguard and Port Authorities vehicles  
• Operational vehicles used by London borough councils
• Vehicles of the armed forces
• Royal Parks Agency vehicles

Are there Congestion Charge discounts?

Some motorists are eligible for Congestion Charge discounts which make the daily fee cheaper. Check to see if you fall into one of the discounted categories:

• London residents - those living within the London Congestion Charge zone will benefit from a 90% discount on the daily chargen when using their vehicle(s)
• Blue Badge holders - also known as disabled badge holders, Blue Badge holders are eligible for a 100% discount and can register up to two vehicles under the scheme
• Vehicles with 9+ seats - Large passenger vehicles such as minibuses and coaches can claim a discount of up to 100% of the Congestion Charge fee
• Recovery vehicles and accredited breakdown services - vehicles falling into one or both of these categories can claim back 100% of the daily Congestion Charge fee  

What changes are happening to the London Congestion Charge zone?

In July 2024, Transport for London (TfL) confirmed that drivers of electric vehicles (EVs) will need to pay congestion charges from 25th December 2025 - what a nice Christmas present for drivers! Currently, zero-emission vehicles are exempt from paying the £15 fee to enter the zone in Central London as a reward for ‘going green’.  

TfL has also hinted that more changes are likely to happen in the future; this could see the zone fall in alignment with the existing LEZ and ULEZ schemes as one central ‘pay-as-you-go’ system. However, no plans have yet been confirmed.

The Mayor's Transport Strategy aims for 80% of all trips in London to be made on foot, bicycle or by using public transport by the year 2041. It’s a very big ask of the public and will require a huge amount of change to reach the target figure, which is why the city’s leader - Sadiq Khan - heavily promotes an emissions free capital. 

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If you’re hoping to make your journey into Central London a cheaper one, then we can help. Here at Octane Finance, we specialise in brokering the best vehicle finance solutions, no matter what your needs.

Discover how much you could be paying for a new or used car or van on a Personal Contract Purchase (PCP) or Hire Purchase (HP) contract by using our handy online free finance calculator.