Higher congestion charge and larger congestion zone

1) In June 2020, the London congestion charge was increased from £ 11.50 to £ 15.00 per day, was extended to evenings and weekends.

https://www.standard.co.uk/news/tra...se-evenings-weekends-sadiq-khan-a4470146.html


2) In addition, the £ 1 discount for early direct payments has been canceled. More importantly the 90% resident discount has been closed to new applicants.

https://tfl.gov.uk/modes/driving/residents-discount

The above features were meant to be temporary, but they could remain permanent.


3) In all likelihood, the congestion charge area will be widened to the North Circular and South Circular in October 2021.

https://www.fleetnews.co.uk/news/fl...could-be-expanded-to-north-and-south-circular


As a reminder, here are the descriptions of the North and South Circular Roads in London:

https://en.m.wikipedia.org/wiki/South_Circular_Road,_London

https://en.m.wikipedia.org/wiki/North_Circular_Road


Impact on Car Ownership Budget

Even if you own an ULEZ compliant vehicle, you will have to spend £15 per day as soon as you move your car from your parking slot. Doing the school run, commuting to work, going to a hospital appointment, and visiting friends will become expensive.

Assuming you use your car 100 to 200 days per year, your annual expense for the congestion charge will be in a £1,500 to £ 3,000 bracket.

Other annual car expenses (insurance, fuel, car park, maintenance, repairs etc.) are typically in the region of £ 2,500.

Add to the above your annual car depreciation, say £ 2,000 if you own a second-hand vehicle, or £4,000 if you purchase a brand-new car…

…Your total car ownership budget would range from £6,000 to £9,500 per year.


Impact on car sharing

For now, “the congestion charge is included as part of your Zipcar membership”, as shown here:

https://www.zipcar.com/en-gb/blog/how-it-works/congestion-charge-ulez-dart-charge

However, will the London administration revisit its arrangements with Zipcar in the near future? Will Zipcar then increase its hourly and daily prices in order to recoup their costs once the congestion is enlarged?


Impact on car rental

In contrast with car sharing, it is up to the users to pay their congestion charge when they rent a car.

Here are a couple of examples:

https://www.sixt.co.uk/faqs/london-congestion-charge/

https://faq.europcar.co.uk/damage-&-fines/what-happens-if-i-have-a-fine.html

Warning: should you fail to pay the congestion charge on time, the hire company will charge you a penalty charge.


Impact on taxi delivery fares

Perhaps delivery companies and taxis will increase the price of their products and services.



Conclusion

We were considering buying a car as it is a safer mode of transportation during the Covid-19 pandemic, albeit less green that public services.

Nevertheless, owning a car in Central London is becoming too expensive for our family.

We will have to rent a car when visiting our relatives during the Christmas season, share a car for a few weekend trips, and take a taxi when meeting friends in remote areas of London.