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Car tax fee affecting millions of drivers axed from tomorrow

Motorists will not have to pay a well-known car tax fee from tomorrow, with journeys set to be free of charge.

Traffic jam in London

Motorists will not pay Congestion Charge or ULEZ fees on December 25 (Image: Getty)

A car tax bill affecting millions of road users will be temporarily scrapped from tomorrow in a major boost for petrol and diesel owners. Sadiq Khan will remove London’s Congestion Charge and Ultra Low Emission Zone (ULEZ) from December 25, with motorists able to get around the capital without paying,

The £15 Congestion Charge will be removed for an entire week, with road users able to dip their wheels into areas such as Westminster, Soho, the City and Waterloo without picking up fees. London’s ULEZ covers a much wider area, reaching across 33 London boroughs and the boundaries from Heathrow to Upminster.

Entering the congestion charging zone in central London

Motorists will not pay Congestion Charge or ULEZ fees on December 25 (Image: Getty)

However, this £12.50 per day fee for non-compliant cars is only scrapped on Christmas Day itself, meaning fees will apply as usual on Boxing Day and New Year. 

Transport for London explained: “The central London Congestion Charge will be suspended from Thursday 25 December to Thursday 1 January. Charging will resume on Friday, 2 January 2026. The Ultra Low Emission Zone (ULEZ), which covers most of Greater London, will apply as normal, excluding Christmas Day.

“The Blackwall Tunnel and Silvertown Tunnel charges will also apply as normal, but will be suspended on Christmas Day.”

Resident trips account for around 3.7 million car journeys on a typical day in London, although this is likely to be less at Christmas. TfL is set to introduce some major changes to travel fees from January with Congestion Charge costs set to rise.

From 2 January 2026, the daily Congestion Charge will increase from £15 to £18 if paid on the day of travel or in advance. For those paying within 3 days after travelling to the capital, fees will jump from £17.50 to £21.

In another update, the 100% Cleaner Vehicle Discount for electric car owners comes to an end on 25 December. From the new year, EV owners will have to pay to use many Central London roads for the first time.

As of 2 January, a new discount is introduced offering a 25% reduction on the daily charge for electric cars registered on Auto Pay. Meanwhile, a 50% discount will apply on the daily Congestion Charge for electric vans, HGVs, and quadricycles.

TfL said: “This means the daily charge will be £13.50 for electric cars, and £9 for electric vans, HGVs, and quadricycles – instead of £18 – for vehicles on Auto Pay. If the vehicle isn’t registered for Auto Pay, the discounted charge will not apply.”

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