EV exemption from Congestion Charge replaced with discount

Transport for London has confirmed it is removing the full exemption from Congestion Charge for battery electric vehicles from January 2nd 2026, however will it will be introducing a discount fare for EV drivers.

The daily Congestion Charge - which will increase from £15 to £18 from 2 January 2026, will be available at a 25 per cent discount for electric cars, including Private Hire Vehicles, registered for Auto Pay. A 50 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay will also be put in place.

As part of the second phase from 4 March 2030, there will be a 25 per cent discount for electric vans, HGVs and quadricycles registered for Auto Pay and a 12.5 per cent discount for electric cars, including Private Hire Vehicles, registered for Auto Pay.

The Residents' Discount will change to incentivise longer term take-up of EVs, with those currently living in the area remaining unaffected. Those who are in receipt of the Residents' Discount prior to 1 March 2027 will retain their 90 per cent discount, regardless of vehicle fuel type. For those newly applying for the Residents' Discount after 1 March 2027, the 90 per cent discount will only apply to EVs.

Christina Calderato, TfL's Director of Strategy, said: "If we want to ensure that London remains a thriving city for everyone to enjoy, then it's vital that traffic and congestion is kept under control and managed effectively. The changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport."

Tom Middleditch, Sustainability spokesperson at Europcar, said: “The news that the Mayor of London is removing the 100% exemption from Congestion Charge for battery electric vehicles from January 2nd 2026 is disappointing. It is yet another example of the mixed messages coming from the country’s leadership. On the one hand private motorists and businesses are being urged to make the switch to zero tailpipe emissions; on the other the incentives to make the switch are being rapidly removed although the market is still relatively immature. There seems to be a battle between clean air and revenue – and it feels like clean air is going to be the loser."

Kirsten Zoe Smith, Co-Chair of SUFA and Net Zero Strategist at Recorra, said: “Freight operators across London want to transition to zero emissions vehicles. They currently face significant cost barriers to doing so, from the difficulties of securing grid connections, to weight regulations and energy costs. Introducing a congestion charge for electric vans and HGVs will at best slow that progress, and at worst reverse it. Penalising operators trying to do the right thing  will not reduce congestion, but make it harder for them, and others, to make the shift to zero emissions fleets.”