Two separate daily charges can apply to a van working in London. Here is how each works, who pays what, and how to add them into the price of a job.
The Congestion Charge applies to driving inside the central London zone during charged hours. The Ultra Low Emission Zone (ULEZ) applies to vehicles that do not meet emission standards, across all London boroughs. A van can be liable for one, both or neither.
| Charge | Rate | When |
|---|---|---|
| Congestion Charge | £18 per day (since 2 January 2026) | 7am to 6pm Monday to Friday; midday to 6pm at weekends and bank holidays |
| ULEZ, non-compliant vehicle | £12.50 per day | Every day, all day |
Compliant vehicles do not pay ULEZ. As a general rule, diesel vans need to meet Euro 6 and petrol vans Euro 4. Check the registration on the TfL vehicle checker. Heavier vehicles can also fall under separate Low Emission Zone rules.
Suppose a driver enters the Congestion Charge zone on 3 days a week. At £18 that is £54 a week, roughly £234 a month. If the van is also not ULEZ compliant, add £12.50 for each day it is driven in London, about £162 over those same days in a month. Either figure can wipe out the margin on a low-paid drop.
The charge is per day, not per delivery. A driver who makes five drops in the zone in one day pays once, so the cost per drop falls as more drops are bundled into the same day. Pricing a single drop as if it carried the whole charge makes you look expensive, and ignoring the charge makes you lose money.
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No. It is a daily charge, however many times you enter the zone that day during charged hours.
Electric vehicles no longer have a full exemption. Some discounts apply, and they depend on vehicle type and registration for Auto Pay. Check TfL's current rules.
You will be sent a penalty charge notice, which costs far more than the daily charge. Pay on the day or set up Auto Pay.
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Figures are examples and the charge rates were checked in October 2026. Rates, hours and rules change, so confirm them with Transport for London or the relevant authority before you rely on them. This is general guidance, not legal or financial advice.