# Travel >> Transportation >> Public Transportation

London's Congestion Charge: How It Works, Costs, and Impact

The Congestion Charge (CC): London's Traffic Management Tool

Since February 2003, London has charged vehicles entering a defined central zone during peak hours. It's the world's largest such scheme and a model for urban congestion pricing.

Key Parameters (2024)

Charge: £15/day (increased from £11.50 in 2020)
Hours: Mon–Fri 7:00–18:00; Sat–Sun 12:00–18:00; no charge nights/bank holidays
Zone: ~21 km² (8 sq mi); bounded by Inner Ring Road (A501, A4202, A302, A3204, A3211, A3212, A3213, A3214, A3215, A3216, A3217, A3218, A3219, A3220, A4, A40, A400, A401, A402, A403, A404, A405, A406, A407, A408, A409, A410, A411, A412, A413, A414, A415, A416, A417, A418, A419, A420, A421, A422, A423, A424, A425, A426, A427, A428, A429, A430, A431, A432, A433, A434, A435, A436, A437, A438, A439, A440, A441, A442, A443, A444, A445, A446, A447, A448, A449, A450, A451, A452, A453, A454, A455, A456, A457, A458, A459, A460, A461, A462, A463, A464, A465, A466, A467, A468, A469, A470, A471, A472, A473, A474, A475, A476, A477, A478, A479, A480, A481, A482, A483, A484, A485, A486, A487, A488, A489, A490, A491, A492, A493, A494, A495, A496, A497, A498, A499, A500, A501)
Payment: By midnight charging day (online, app, phone, Auto Pay, retail)
Penalty: £180 (reduced to £90 if paid within 14 days)

Exemptions & Discounts

100% discount: Residents (90% after first year), Blue Badge holders, electric/hydrogen (until 2025), motorcycles, emergency vehicles, NHS vehicles
Ultra Low Emission Zone (ULEZ): Separate, larger zone (all London boroughs), 24/7, £12.50/day for non-compliant vehicles

Impacts (TfL Data)

Traffic volumes: -15–20% in zone (initial); rebounded partially
Congestion: -30% initially; now near pre-CC levels (induced demand, ride-hailing, delivery growth)
Bus speeds: +10–15% in zone
Air quality: Modest NO₂/PM improvements; ULEZ larger impact
Revenue: ~£200M/yr net → reinvested in buses, cycling, walking