London scraps EV Congestion Charge exemption

Electric vehicle drivers in London will have to pay the city’s Congestion Charge from next year, Mayor Sadiq Khan has confirmed.

From January 2, 2026 electric van drivers will have to pay £9 per day to drive into the capital while electric car owners face a daily charge of £13.50.

Until now, EVs have enjoyed exemption from the charge under the Cleaner Vehicle Discount (CVD), but as part of measures that will also see the charge rise from £15 to £18, owners will only be offered a discount.

Electric vans will qualify for a 50% reduction on the daily rate while car drivers will get a 25% discount. However, in order to qualify, drivers must be registered on TfL’s Auto Pay system, which automatically deducts the fee from their bank account.

The discounts will reduce in March 2030 to 25% for vans and 12.5% for cars, HGVs and quadricycles.

The Mayor said that without the changes more than 2,000 extra vehicles a day would enter the congestion zone.

Announcing the changes, he said: “Keeping London moving by reducing congestion is vital for our city and for our economy. While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

“We must support Londoners and businesses to use more sustainable travel, so I’m pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles, as we work to build a greener and better London for everyone.”

TfL said that the changes came after feedback from Londoners but critics have warned that scrapping the CVD would cost motorists thousands of pounds, harm small businesses and could reverse progress on air pollution.

 

Campaign group Electric London, which includes drivers’ organisations, charging operators, and businesses such as Royal Mail, DPD and Openreach, estimates that the change could cost drivers up to £5,000 a year and drive an 8% increase in particulate emissions as drivers switch back to cheaper ICE cars.

In a statement responding to the Mayor’s announcement, the body said: “We are disappointed by TfL’s decision to roll back the Cleaner Vehicle Discount. The move risks London’s global leadership in electrification at a critical time and introduces thousands of pounds in new costs for people and businesses doing the right thing.

“There is clear consensus across businesses, environmental groups and unions that the CVD has been one of London’s most effective clear air tools, cutting pollution, and supporting both professional drivers and fleets that keep our city moving.

“London has led the way on electrification. It will be critical to prioritise long-term policies that deliver equal access to EVs and affordable charging across the capital, and consistent incentives, to maintain progress and confidence. These signals are now even more important as EV drivers face a double hit given the new EV tax expected in the budget.”

The news comes just days after reports that the Government is planning to introduce a pay-per-mile tax on electric vehicles to plug the growing gap in fuel duty revenues. The scheme could add £250 a year to running costs for an average EV driver at a time when Westminster is trying to encourage more motorists to switch.