UK drivers face a significant shake-up of motoring regulations this month, with six new laws and rules coming into force throughout January 2026. The changes, which impact everything from urban charges to electric vehicle mandates, will affect motorists across the nation, with the first alteration taking effect from Friday, January 2nd.
London Congestion Charge and EV Exemption Scrapped
The most immediate change for many is in the capital. The London Congestion Charge will rise from £15 to £18, effective from January 2, 2026. This marks the first increase since June 2020, when the fee jumped from £11.50. The hike, implemented under Labour London Mayor Sir Sadiq Khan, is designed by Transport for London (TfL) to discourage thousands of weekday car journeys.
In a major shift for eco-conscious drivers, the 100% exemption for electric cars from the charge has now been removed. For the first time, EV drivers must pay to enter the zone. However, those who register for the Auto Pay system can secure a 25% discount. Electric vans, heavy goods vehicles, and quadricycles registered for Auto Pay will receive a more substantial 50% reduction.
Christina Calderato, TfL's Director of Strategy, stated: “If we want to ensure that London remains a thriving city for everyone to enjoy, then it's vital that traffic and congestion is kept under control and managed effectively. The changes to the Congestion Charging scheme play a key role in allowing us to do that.”
Digital Driving Licences and Fuel Price Transparency
Another landmark change is the move towards digital documentation. Labour Party Science Secretary Peter Kyle announced that a mobile driver’s licence will be among the first digital documents in a new GOV.UK Wallet, launching later this year. This innovation will eventually allow people to use their phone to prove their age in shops or online. A Government spokesperson confirmed: “We plan to begin rolling out an initial digital driving licence, which will eventually be usable for everything your paper licence is currently used for.”
In a bid to promote competition and help drivers save money, the new Fuel Finder scheme will also go live. From early this year, motorists will gain access to near-real-time fuel pricing data through third-party apps and sat-navs. The Competition and Markets Authority (CMA) has been empowered to enforce compliance, with the authority able to issue fines for breaches of the Fuel Finder requirements.
Electric Vehicle Mandate and Charging Costs
The government's push towards electric motoring accelerates with the Zero Emission Vehicle (ZEV) mandate. The legally required sales targets for manufacturers are increasing again. By the end of 2026, 33% of new car sales and 24% of new van sales must be electric. This mandate places a legal obligation on carmakers to boost EV adoption.
Meanwhile, the cost of charging an electric vehicle at home is also subject to change. A revised energy price cap of £1,758 took effect on January 1st and will remain until the end of March. While the 0.2% rise is relatively small, it adds pressure at a time of high living costs, affecting both household bills and the growing number of drivers who charge their EVs domestically.
Further developments are also on the horizon. Mayor Sadiq Khan is set to review feedback on plans to pedestrianise Oxford Street, aiming to create a cleaner, safer public space. Together, these six changes represent a substantial shift in the UK's driving landscape, affecting costs, compliance, and the long-term transition to sustainable transport.
