In the News…Is Congestion Charge Exemption for EVs being Abolished or Not?

Get answers to the most common questions you're likely to have about the changes happening to London's congestion charge.

Are electric vehicles currently exempt from congestion charge?

Until recently, if you drove a fully-electric vehicle or a hydrogen fuel cell vehicle through London’s congestion charging zone (CCZ)  you were exempt from paying the congestion charge. That still stands at this moment in time.

What's changing?

 From 25 December, 2025 onwards, the exemption for EVs and hydrogen vehicles is set to be abolished meaning all drivers, irrespective of their vehicle will be liable to pay the congestion charge. (The new rules will actually apply from 2 January, 2026 onwards, since it’s free to travel in the  zone at all times from 25th December  up to and including 1st January every year).

Taxi and bus among traffic in London

Who’s impacted by the changes in congestion zone regulations?

The new regulations have naturally caused considerable consternation among businesses and owners of electric vehicles alike, particularly those living and operating in the zone.

Many businesses have signed an open letter asking Mayor of London Sadiq Khan to exempt electric vans from congestion charge due to the considerable impact it will cause to their operations having recently invested (or been poised to invest) in environmentally friendly fleets.

What are the arguments for the changes?

The measures have begged the question, what the congestion charge is for, if it isn’t to discourage high polluting vehicles by encouraging and rewarding emissions free vehicles from entering.

However, TfL argues that every year, congestion costs London billions of pounds and the congestion charge is in place to reduce the total number of vehicles from entering the central one per cent of the city  to manage traffic and congestion at the busiest times of day where road space is most constrained; this must now include all vehicles, in order for it to be fit for purpose.

 Seb Dance, Deputy Mayor for Transport, said:

'Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

'At the same time we must support Londoners and businesses to use greener and more sustainable travel. That's why I'm pleased we're proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.

'We encourage everyone to have their say and respond to the public consultation.'

Traffic jam in London

What's being proposed to soften the reforms?

As part of a public consultation taking place until 4 August 2025, a new Cleaner Vehicle Discount (CVD) is being proposed in London's Congestion Charge scheme, which continues to incentivise the use of electric vehicles. This CVD will replace the current 100% exemption for electric vehicles with a tiered discount. The discount will be implemented in two phases, starting January 2, 2026, with a 50 per cent discount for electric vans, heavy Goods Vehicles (HGVs), light quadricycles and heavy quadricycles registered for Auto Pay and a 25 per cent discount for electric cars registered for Auto Pay.

Further adjustments in March 2030 will lower the discount to a 25 per cent discount for electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay and a 12.5 per cent discount for electric cars registered for Auto Pay.

What other support is being offered to EV drivers and business owners?

There’s an ongoing package of support from City Hall for businesses to switch to zero emission, including the Mayor's scrappage scheme, providing financial assistance to help eligible London residents, businesses and charities, to scrap, donate or retrofit vehicles that don’t meet the Ultra Low Emission Zone (ULEZ) emissions standards.

Are there any other proposals affecting drivers in the congestion charge zone?

It’s also being proposed that  the charge level goes up from £15 to £18, the first rise in 5 years, starting from 2 January 2026. From 1 March 2027, it’s proposed that eligible new applicants for the 90 per cent Residents' discount will only be able to receive the discount for an electric vehicle. 

a residential street in London

How can I be a part of the public consultation?

The public consultation runs from 27 May to 4 August 2025 and can be accessed here: https://tfl.gov.uk/congestion-charge-proposals

Where can I find the current discounts and exemptions from congestion charge?

Discounts and exemptions can be found here: https://tfl.gov.uk/modes/driving/discounts-and-exemptions

When was the congestion charge last increased?

The charge was last increased to £15 in 2020. An increase to £18 in January 2026 is a below inflation increase for the period since the charge was last changed.

When does congestion charge currently need to be paid by?

The daily charge is currently £15 if you pay in advance or on the same day, or £17.50 by midnight of the third day after travel. For those paying the charge by midnight of the third day after travel, the charge would increase from £17.50 to £21.