London congestion charge to rise by 20% as EV exemption chopped
The London congestion charge is set to increase on 2 January 2026 as EV exemption ends
Transport for London has revealed plans to increase the cost of the London congestion charge by 20 per cent and end the exemption for electric vehicles, with its new proposal set to kick in from 2 January.
The current charge – £15 per day – has been in place since 2020, and TfL’s suggested increase to £18 is, it said, below the rate of inflation over the past five years.
The electric vehicle congestion charge exemption is also set to be culled, with EV drivers instead getting a 25 per cent discount on the new £18 charge, dropping to 12.5 per cent on 4 March 2030, if registered for the Auto Pay system. That will mean EV drivers going from the current exemption to £13.50 from the beginning of next year, and £15.75, if there are no further price rises, in March 2030.
TfL said the increase in the number of EVs being sold means maintaining the “100 per cent discount would lead to worsening traffic levels and congestion”. Electric vans, HGVs and quadricycles will be given a 50 per cent discount from next year, dropping to 25 per cent on 4 March 2030.
“It is timely to review whether a further increase is necessary in order to maintain the deterrent effect of the charge”, said the TfL statement. “This increase would help to maintain the traffic management effects of the Congestion Charge scheme in central London, support the other aims of the Mayor’s Transport Strategy, and meet the Mayor’s aims to improve air quality in London, achieve a net zero carbon city by 2030 and cut congestion in the capital.”
In an attempt to promote policies on reducing private car use “in favour of active, efficient and sustainable modes”, only new applicants with electric vehicles will be eligible for a 90 per cent residents’ discount from 1 March 2027. However, existing residents will retain their discounts, provided they renew their registration every year.
The proposed changes are now subject to a 10-week consultation, closing on Monday 4 August.
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