Mayor of London, Boris Johnson, confirmed that he is removing the Western Extension Zone of the Congestion Charge scheme by Christmas – the last charging day will be on Christmas Eve, 24 December 2010.

A number of other changes to the scheme will come into effect from 4 January 2011. These include the introduction of an automatic payment system, CC Auto Pay, that according to TfL means that no one need ever be fined again.

A new Greener Vehicle Discount is also being introduced to encourage a switch to much cleaner and greener cars. The replacement to the Alternative Fuel Discount, the new scheme will work on CO2 emissions – not fuel type as before – and will provide a 100% discount to cars that emit 100g/km of CO2 or less and meet the Euro 5 standard for air quality.

TfL added that it will look to reduce this CO2 benchmark further as cleaner cars, including new electric and hybrid electric plug-in vehicles, come to market with significantly lower emission levels.

Finally, all drivers not qualifying for exemption will see an increase in the daily charge from 4 January, when it rises from £8 to £9 if paid using CC Auto Pay; or £10 if paid in advance (or on the day) using conventional means and £12 if paid the next charging day.

Mayor of London, Boris Johnson, said: 'It is essential that the Congestion Charge is made fairer and more effective, but also that it continues to do what it says on the tin and remains a deterrent to all but essential journeys into the heart of the Capital. I have therefore taken the difficult, but nevertheless crucial decision to increase the daily charge to £10.

'However, motorists can take comfort in the new CC Auto Pay accounts that will mean a £1 discount and the peace of mind that never again will they get clobbered for forgetting to pay the charge.'