Major changes to London's Congestion Charge scheme have been confirmed, with electric vehicle owners set to lose their exemption from the fee in the new year. The move, announced by London Mayor Sadiq Khan, forms part of a broader strategy to reduce traffic volumes in the heart of the capital.
New Charges for Electric Vehicles in 2026
From January 2, 2026, the Cleaner Vehicle Discount, which previously exempted fully electric vehicles from the daily charge, will be removed. This means drivers of electric cars, vans, and lorries will have to pay to enter the Congestion Charging zone. Transport for London (TfL) confirmed the specific implementation date alongside other alterations to the scheme.
While the exemption ends, transitional discounts will be introduced. From the start date, electric van and lorry drivers will receive a 50% discount, and electric car drivers will get a 25% reduction. This translates to a daily fee of £13.50 for electric car drivers and £9 for electric van owners.
Phased Reduction of Discounts
These discounts are not permanent. TfL has outlined a plan to gradually phase them out. By March 2030, the discount for electric vans and lorries will fall to 25%, and for electric cars, it will decrease to just 12.5%.
Simultaneously, the standard Congestion Charge for non-electric vehicles will increase from £15 to £18, marking the first rise in the fee since 2020.
Support for Residents and Sustainable Travel
The updated scheme maintains significant support for certain groups. Residents living within the zone will continue to benefit from discounts of up to 90%. However, a key change means that people moving into the area after March 1, 2027 will not qualify for this resident discount unless they own an electric vehicle.
Reductions of up to 100% will remain in place to assist low-income and disabled Londoners. Mayor Sadiq Khan emphasised the rationale behind the changes, stating, "Keeping London moving by reducing congestion is vital for our city and for our economy." He warned that without action, an extra 2,200 vehicles would use the zone on an average weekday next year.
Christina Calderato, TfL's Director of Strategy, said the changes strike "a careful balance" to help drivers and businesses transition to cleaner transport while managing traffic. The announcement also included supportive comments from climate charity Possible, who welcomed the link to public transport fares and new support for electric car clubs.
The overarching goal, as stated by the Mayor, is to support a shift to more sustainable travel and work towards "a greener and better London for everyone."
