London Congestion Charge Hikes: EVs No Longer Exempt
London's Congestion Charge (CC) is set to increase from £15 to £18, effective 2 January 2026, marking the first hike since 2000. Mayor Sadiq Khan announced the new standard fee, which rises to £21 if not paid on the same day. The charge applies to petrol or diesel vehicles entering the CC zone during specific hours: 07:00-18:00 Monday-Friday, and 12:00-18:00 Saturday-Sunday and bank holidays, with an exemption between Christmas Day and New Year's Day. The Mayor noted this increase is below inflation over the past five years, aligning with broader fare rises across London transport.
A significant and controversial change involves the end of the 100% exemption for electric vehicles (EVs). From 2 January 2026, EV drivers will incur a £9 fee for vans or lorries (a 50% discount) and a £13.50 fee for cars (a 25% discount). These reduced rates are scheduled to be halved again in 2030. To qualify for these discounts, EV owners must register for TfL’s AutoPay system. This policy shift comes as nearly 20% of vehicles using the CC zone are now electric. While residents within the zone retain a 90% discount for any vehicle, new applicants after March 1, 2027, will only receive it if they own an EV.
These adjustments are unwelcome for motorists, especially businesses relying on road transport for deliveries. However, the initiative aims to deliver substantial benefits by further cutting congestion and pollution, while also generating revenue. Millions of pedestrians, cyclists, and bus passengers are anticipated to benefit from reduced traffic and improved air quality. TfL states that these changes aim to strike a careful balance between continuing to support the transition to EVs and ensuring the Congestion Charge remains effective in managing central London traffic.
