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As Transport for London (TfL) has confirmed, this is an important change for London drivers and the capital’s green agenda. Comprehensive reform of London congestion charge In just a few weeks.
The headlines may be about EVs having to pay a congestion charge for the first time with a £13.50 charge (as long as drivers register on TfL’s Auto Pay system), but all drivers will have to pay more too, with the standard congestion charge rising from £15 to £18.
This news has come after the leaked proposals of the central government. Charge per mile tax on electric vehicles from 2028Many MLAs accused him of sending mixed messages. It was just a few months ago UK electric car grant It was introduced to encourage people to buy EVs with rebates of up to £3,750 off the price of some electric cars. Now EV owners are looking at the possibility of new congestion charges and other tax hikes.
Congestion charge proposals are not easy to understand due to the discounts available, late payment possibilities, deals for Central London residents and different rates for vans and trucks. Here’s everything you need to know about the congestion charge changes in London so you don’t get caught out.
Changes in EV congestion charge
- From 2 January 2026, the daily congestion charge will increase from £15 to £18 if paid on the day or in advance.
- If paying after the journey, the late payment rate will increase from £17.50 to £21.
- For the first time, electric cars will no longer get a full exemption.
- The previous 100 percent “cleaner vehicle discount” for EVs expires on December 25, 2025.
- The resident discount (90 percent for area residents) remains in place for those who received it before March 1, 2027, regardless of vehicle. But new resident rebate applicants after that date will only get the 90 percent rebate if they have an EV.
- There will be full exemption for “back-to-base” car-club EVs picked up and returned from the same bay within the Congestion Charge Zone (CCZ).
- In installing this new structure, TfL estimates that the zone could see approximately 2,200 additional vehicles on an average weekday without any changes.
Why the change?
TfL says the CCZ remains a vital tool for relieving traffic pressure in central London, and previous exemptions for EVs are reducing the effectiveness of the scheme now that electric vehicles are far more common.
As stated in the official briefing: “Without these changes, we estimate that on an average weekday there could be over 2,000 additional vehicles moving into the congestion charge zone during operating hours.”
For his part, Mayor Sadiq Khan said: “Keeping London moving by reducing congestion is vital for our city and our economy. While the congestion charge has been a huge success since its introduction, we must ensure it remains fit for purpose, and sticking to the status quo will see around 2,200 more vehicles use 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 there will be substantial incentives for Londoners to switch to cleaner vehicles as we work to create a greener and better London for everyone.”
What does this mean in practice
- From January 2026 you will have to pay £18 if you drive a petrol or diesel vehicle in the CCZ (Mon-Fri 7am-6pm; Saturday and Sunday/Bank Holidays 12pm-6pm).
- If you drive a fully electric car registered for Auto Pay, you’ll have to pay £13.50. If you’re not on Auto Pay you’ll have to pay the full £18 (so registration counts).
- If you drive an electric van or HGV on Auto Pay: £9.
- If you live inside a CCZ and currently have the 90 per cent resident exemption, you retain it – but any new applicants after March 2027 must have an EV to get the 90 per cent.
- Car-club users of EVs operating ‘back-to-base’ within the zone will be fully exempted.
- The changes represent the first increase in the congestion charge since the last increase in 2020.
what critics say
Motoring groups and business representatives have not held back. Edmund King, chairman of the AA, said: “This is a backwards step that will unfortunately have an adverse impact on air quality in London. Our AA UK EV Readiness Index shows that many drivers are not ready to switch to electric vehicles, so incentives are still needed to help them over the line. The Mayor needs to reconsider to continue helping to make more much-needed van and car journeys electric in the capital.”
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Similarly, the Electric London Coalition, representing companies such as Royal Mail and Openreach, has warned that the changes could cost professional drivers up to £3,000 a year if they enter the sector five days a week.
What should EV drivers do now?
- If you drive in central London, check if you’re registered for Auto Pay – only that guarantees a discount for EVs.
- If you have an EV and live in the area, but plan to sell or replace it after March 1, 2027, remember that the vehicle will need to be electric for new resident exemption applications.
- Keep an eye on your vehicle class: the new rules are different for cars vs vans/HGVs/quadricycles.
- Plan the timing of your journey: Remember that the charging window for the CCZ is 7am to 6pm on weekdays, and 12pm to 6pm on weekends and bank holidays.
- If you use a car-club EV with pick-up and drop-off within the CCZ, check your eligibility for the full exemption.
- Keep an eye on any future rises: TfL’s revised guidance suggests future rises could be in line with inflation +1 per cent or changes in Tube fares.
Why is it important for EV adoption?
It’s a watershed moment: the rebate that once made central London virtually free for electric car drivers has ended. This changes the dynamics of London’s transition to zero-emission transport. Although few incentives remain, the message is clear: even clean vehicles now pay a meaningful road charge in London.
This could speed up decisions for businesses, private motorists, driver and courier firms and those in the capital still considering switching to EVs.