London considers dropping EV congestion charge exemption

The city of London is getting serious about ending the exemption of electric vehicles from the city centre congestion charge, as had been previously announced. From 2 January 2026, there will only be a discount on the congestion charge for electric cars and electric commercial vehicles. At the same time, the city centre toll is also to be increased.

Transport for London specified the planned changes to the congestion charge this week. The general daily charge for vehicles entering the relevant zone is set to rise from £15 to £18 in January 2026. The area includes areas and sights such as Soho, Mayfair, Piccadilly Circus, Covent Garden, Westminster and Waterloo Station. The Congestion Charge literally means congestion charge. The name was chosen because it is intended to prevent congestion and, therefore, emissions. The high amount is intended to incentivise people to switch to public transport.

In addition to the increase in the general daily charge, the current exemption of electric vehicles from the toll is to be abolished. Instead, a staggered discount for emission-free vehicles is to be introduced from 2 January 2026: Electric cars will receive a 25 per cent discount on the congestion charge, electrically powered vans, trucks and heavy small vehicles, even 50 per cent, provided they are registered for the ‘Auto Pay’ system. It will not be necessary to register electric vehicles separately for the discount: Eligibility for the discount will be recognised automatically using DVLA (UK vehicle registration authority) data.

The discounts are to be reduced in 2030: From 4 March 2030, the discount for electric cars will be reduced to 12.5 per cent, and to 25 per cent for larger electric vehicles. The gradual adjustment is intended to keep the cost structure sustainable for the city in the long term while also offering companies and private individuals planning security.

Image: Transport for London

The higher discount for electric commercial vehicles is being sought as the switch to emission-free alternatives is still progressing comparatively slowly, particularly in the delivery sector. Sophie O’Connell from the Green Alliance think tank described the plans as a “clear step in the right direction” and praised the differentiation between private and commercial vehicles in particular.

The residents’ discount scheme will also focus on electromobility in future: From March 2027, only new applicants with an all-electric vehicle will be able to benefit from the 90 per cent discount. Existing customers will retain their status – a transitional arrangement designed to ensure fairness.

All of these measures have a clear objective: to reduce motorised private transport in favour of emission-free alternatives. The city centre of London already has one of the best public transport connections in the world, complemented by a cycle path network of over 400 kilometres.

tfl.gov.uk