Big blow for electric cars in London

Electric vehicle drivers in London can now expect to pay congestion charges in the city for the first time as they officially lose their exemption from the start of 2026.

The congestion charge has been in place for over two decades, helping to manage traffic and congestion in central London. Introduced in 2003, it covers an area of central London between 7 am and 6 pm on weekdays, and between noon and 6 pm on weekends and bank holidays.

Until now, pure battery-powered electric vehicles had been eligible for a 100% discount, but from Friday (1 January), this was reduced to 25% for cars and 50% for vans and lorries. The discount will be cut further from 4 March 2030, to 12.5% for cars and 25% for vans and lorries.

The new system, with tiered discounts available via Auto Pay, means that:

The daily Congestion Charge will increase from £15 to £18 from 2 January 2026 – a lower than inflation increase and the first increase since 2020
As part of the first phase from 2 January 2026, there will be a 50 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay as well as a 25 per cent discount for electric cars registered for Auto Pay
As part of the second phase from 4 March 2030, there will be a 25 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay, and a 12.5 per cent discount for electric cars registered for Auto Pay.

“The combination of these changes enables a careful balance between continuing to support the important transition to EVs and ensuring that the Congestion Charge remains effective at managing traffic and congestion within central London,” TfL said in November.

“Since the CVD was introduced in 2019, the number of EVs registered has risen almost sixfold – from around 20,000 to more than 116,000 earlier this year – they will account for close to 20% of all vehicles in the Congestion Charging Zone by the end of the year.”

Without these changes, TfL has estimated that there could be more than 2,000 additional vehicles driving during operating hours in the zone on an average weekday.

This would undermine the benefits of the Congestion Charge, leading to more queues and delays – negatively impacting London’s economy, local businesses, bus passengers and other essential services. Every year, congestion already costs London billions of pounds; in 2024 alone, vehicle congestion cost the capital £3.85 billion, averaging £942 per driver.

Alongside the new tiered system, the Residents’ Discount will change to incentivise longer-term take-up of EVs, with those currently living in the area remaining unaffected.

Those who are in receipt of the Residents’ Discount prior to 1 March 2027 will retain their 90% discount, regardless of vehicle fuel type. For those newly applying for the Residents’ Discount after 1 March 2027, the 90% discount will only apply to EVs.