In a significant shift for London's transport policy, Mayor Sadiq Khan has announced that electric vehicles will no longer be exempt from the city's Congestion Charge starting in 2026. This move marks the end of the Cleaner Vehicle Discount and is a core part of a broader strategy to reduce traffic volumes in central London.
The Key Dates and New Fee Structure
Transport for London (TfL) has confirmed that the changes will take effect on January 2, 2026. From this date, the familiar exemption for electric cars will be replaced with a tiered discount system. Drivers of fully electric cars will receive a 25% discount, while those operating electric vans and lorries will benefit from a more substantial 50% reduction.
This recalibration means that the popular battery-powered cars will now incur a daily charge of £13.50 to enter the zone. For business owners using electric vans, the cost will be £9 per day. According to data highlighted by the BBC's Top Gear, approximately 112,000 vehicles are currently registered for the soon-to-be-discontinued discount, indicating the vast number of motorists directly impacted.
Future Reductions and Support Measures
The discounts are not permanent. TfL has outlined a plan for further reductions by March 2030. At that point, the discount for electric vans and lorries will be halved to 25%, and the discount for electric cars will be cut to just 12.5%.
Meanwhile, the standard Congestion Charge for petrol and diesel vehicles is also set to rise. From January 2, 2026, it will increase from £15 to £18, representing the first hike since 2020.
Support remains for certain groups. Residents living within the Congestion Charge zone will continue to enjoy discounts of up to 90%. However, a notable change is that individuals moving into the zone after March 1, 2027, will not be eligible for this resident discount unless they drive an electric vehicle.
Discounts of up to 100% will be maintained for low-income and disabled Londoners, ensuring the most vulnerable are protected from the new financial pressures.
Official Statements on the Policy Shift
Defending the decision, Mayor Sadiq Khan stated that maintaining fluid traffic is vital for London's economy. He was quoted saying, "The congestion charge has been a huge success since its introduction, but we must ensure it stays fit for purpose. Sticking to the status quo would see around 2,200 more vehicles using the zone on an average weekday next year." He emphasised his commitment to building a "greener and better London for everyone" by encouraging a transition to sustainable travel.
Christina Calderato, TfL's Director of Strategy, added that the changes are essential to keep the city's traffic under control. "Striking a careful balance enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport," she explained.
The policy also received backing from climate charity Possible. Izzy Romilly, their Sustainable Transport Manager, welcomed the move, stating, "Tying the Congestion Charge to public transport fares is welcome. It's only right to make sure that public transport doesn't get disproportionately more expensive than driving."
