London’s Congestion Charge has long been a cornerstone of the capital’s efforts to curb inner-city traffic congestion. Introduced in 2003, the scheme has evolved over the years, with several discounts and exemptions introduced to encourage cleaner vehicle use. Most notably, EVs have enjoyed full exemption under the Cleaner Vehicle Discount (CVD). However, TfL (Transport for London) now proposes significant changes that will reshape that landscape.
1. Charge Increase from £15 to £18 Daily (From 2 January 2026)
TfL plans to raise the daily Congestion Charge from the current £15 to £18 as of 2 January 2026 – the first increase since 2020 (Financial Times, The Times, Transport for London, Wikipedia). The rationale: to preserve the deterrent effect of the charge amid increasing traffic, especially as EV numbers rise (Financial Times, Transport for London, Auto Express). Authorities also plan to introduce incremental annual increases aligned with Tube fare hikes (The Times, Transport for London, Fleet News).
2. End of 100% EV Discount (Cleaner Vehicle Discount Expires December 2025)
Currently, pure electric vehicles enjoy a full exemption from the Congestion Charge under the CVD. This exemption is set to end on 25 December 2025, after which EVs will no longer be exempt (Reuters, London City Hall, highways-news.com, petebarden.co.uk). This aligns with TfL’s stated long-term plan since the CVD scheme’s introduction in 2018 (London City Hall).
3. New EV Discounts via Auto Pay (From January 2026)
From 2 January 2026, although EVs will no longer receive a complete exemption, they will qualify for a 25% discount on the new £18 charge—if the vehicle is registered with Auto Pay (i.e., paying automatically)—bringing the cost to approximately £13.50 (Auto Express, highways-news.com, Financial Times, The Times, Wikipedia).
For electric vans and HGVs, a 50% discount via Auto Pay is proposed, making their cost around £9 per day (Financial Times, Auto Express, highways-news.com, The Times).
4. Further Discount Reductions in 2030
The discount structure is set to tighten further in March 2030:
- EV cars would see their Auto Pay discount drop to 12.5%, raising their charge to about £15.75 (or more if rates increase) (Auto Express, Financial Times).
- EV vans and HGVs will see their discount halved to 25% from March 2030 (Financial Times, Auto Express).
5. Residency Discount Adjusted
Currently, residents living within the congestion zone receive a generous 90% discount. Under proposed plans, this will be phased out for non-EV vehicles from March 2027. Only new applicants driving electric vehicles would be eligible for that 90% discount (Transport for London, The Times, Auto Express). Existing recipients will retain their discount upon renewal as things stand (Auto Express).
Why These Changes Are Proposed
TfL argues that the growing number of EVs—driven by air quality and net-zero ambitions—risks undermining the congestion charge’s traffic control function. Modelling indicates that without reintroducing charges for EVs, around 2,200 additional vehicles might enter the zone on an average weekday, increasing congestion and negating the scheme’s benefits (Financial Times, Transport for London, The Times).
Industry and Stakeholder Reaction
The business community has responded strongly. Over 40 companies, including Ocado, the AA, and Openreach, signed an open letter urging the Mayor to reconsider plans for charging electric vans, citing concerns over deterring EV adoption and harming investments in greener fleets (The Guardian, Noah News).
What This Means for EV Drivers & Future Infrastructure
EV owners should be aware that the exemption is ending. While Auto Pay will offer a modest discount, EV drivers will still incur costs—rising further over time. For electric commercial fleets, the new charges may significantly elevate operating costs.
That said, EV charging infrastructure in London and across the UK is also expanding. Latest figures show the number of public charging points surged by around 38% in 2024, reaching nearly 74,000, including over 3,000 new ultra-rapid chargers (Reddit). This growth aims to ease the practical challenges of EV adoption in urban areas.
Summary Table: EV Congestion Charge Changes
| Date | Charge for EVs (Auto Pay) | Discount Structure |
| Pre-25 Dec 2025 | £0 — full exemption | 100% discount (CVD) |
| 25 Dec 2025 – 1 Jan 2026 | Transitional period—CVD expires | EVs begin to be charged at £15/day |
| From 2 Jan 2026 | £13.50 (with Auto Pay on £18 baseline) | 25% discount for EV cars; 50% for vans |
| From March 2030 | ~£15.75 (with Auto Pay) | 12.5% discount for cars; 25% for vans |
| From March 2027 (Residents) | Only EVs eligible for 90% residents’ discount | Others lose that discount |
Final Thoughts
London’s congestion charging scheme is evolving rapidly, reflecting the tension between encouraging green transport and managing traffic efficiency. While EVs remain central to the city’s net-zero vision, TfL aims to restore the scheme’s deterrent power as electric vehicles proliferate. For drivers—private and commercial—this means recalibrating calculations around EV ownership costs, routes, and travel timing.
The public consultation runs until 4 August 2025, with final decisions expected in autumn, and changes coming into force from late 2025 and early 2026 (Transport for London, The Times). For up-to-date details and guidance on registering for Auto Pay and understanding how discounts apply, keep an eye on the official TfL website.
Let me know if you’d like a focus on charging infrastructure, or cost comparisons with ULEZ and public transport alternatives!