The daily congestion charge will rise to £15 a day from next month, Sadiq Khan has announced.
The hours of the congestion charge will also be temporarily extended to seven days a week, rather than just on weekdays like it is at present.
Operating hours will also be temporarily extended in the evening from 6pm to 10pm.
The price will increase from £11.50 to £15, which is a 30% hike, from June 22.
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The Mayor of London said it was ‘not the deal I wanted but it was the only deal the government put on the table’.
‘I had no choice but to accept it to keep the Tubes and buses running,’ Mr Khan added.
‘Fares income has fallen by 90% in the last two months because Londoners have done the right thing and stayed at home – so there simply isn’t enough money coming in to pay for our services.’
The changes are part of the conditions imposed on Transport for London in return for the £1.6 billion bailout agreed by the government yesterday.
The bailout consists of a £1.1 billion grant and a £505 million loan.
The congestion charge and the ultra-low emission zone charge was suspended in March due to the coronavirus crisis, but will now be introduced on Monday.
The ultra-low emission zone costs £12.50 a day and applies 24 hours a day, seven days a week to older vehicles.
TfL has been in talks with ministers for several weeks over a grant, as it requires £3.2 billion to balance its proposed emergency budget for 2020/21.
Mr Khan has frozen single fares on the London Underground, buses, DLR and trams since he became mayor in May 2016.
But as of January 2021 tube and bus fares will rise above inflation and free travel for 1.5 million schoolchildren will be stopped temporarily.
Londoners who have a Freedom Pass – those who are over 60 who travel for free – will also see this suspended during the morning and evening rush hours.
Disabled passengers will not lose their free travel passes.
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