Automatic C-charge payment to beat fines
Congestion charge fines will soon be a thing of the past for many motorists thanks to an automated payment system being introduced next year.
New technology means drivers will be able to have the £8 daily charge deducted from their account automatically, eliminating the threat of fines of up to £180 for late payment.
The system will be introduced following an election pledge from Mayor Boris Johnson to make the congestion charge fairer and simpler to use.
It has been developed by IBM for when the group takes over the running of the charge from Capita in November. Transport for London said the system should be in place by the start of next year.
On average 100,000 fines are issued each month, and nine million late penalties have been handed out since the charge was introduced in February 2003. TfL takes £73 million a year in late penalties. Drivers are charged £8 if they pay on the day they travel and £10 the day after. The charge can be £180 if not paid within a month.
TfL said it had considered the loss in revenue from fines when making long-term budget plans and that it had cut costs to compensate. A source said: "The Mayor said he wanted to introduce it and that is going to be done in 2010. When he came into office he said he wanted to make it as fair as possible and as simple as possible."
The congestion charge costs at least £130 million to administer and raises £89 million each year for re-investment into public transport.
In 2007/08 more than 1.5 million fines were issued, raising £73 million from motorists in late payments.
TfL said: "The transition of the congestion charging contract to IBM will enable TfL to introduce automated payment accounts during 2010 Essentially these accounts will allow drivers to register their vehicle registration number and a credit or debit card with TfL in advance, with payments processed automatically based on the detection of the vehicle in the zone."
The contract between TfL and IBM will last for five years with an option to extend for a further five years.
Paul Watters, head of roads policy at the AA, said it was time the system changed: "It is quite wrong to have so much revenue from penalties and anything that reduces that is a bonus."
