London's Congestion Charge Is Showing Its Age

London’s congestion charge turned 15 in February and it is showing its age. When the charge was introduced, no one foresaw the rapid proliferation of private hire vehicles like Uber. From 2013 to 2017, private hire vehicle registrations soared by over 75 percent: These cars are exempt from paying the congestion charge. A new approach to road pricing is needed to address the changes in the way people and vehicles move around the city and to generate much-needed funds for London’s transport system.

Introduced in 2003, London’s congestion charge is a simple system: a daily charge of approximately $16.20 for entering the 13-mile square congestion charging zone between 7 a.m. and 6 p.m. on weekdays. Registered disabled people can travel for free, while congestion zone residents pay ten percent of the fee to enter the zone during those times.