A significant shift in London's approach to congestion charging has come into effect, marking the end of an era of free travel for electric vehicle owners. From January 2, 2026, drivers of battery-powered cars will now be required to pay a reduced fee to enter central London's congestion zone, while owners of traditional petrol and diesel vehicles face a substantial 20% price increase.
The New Pricing Framework
The base congestion charge has risen from £15 to £18 per day, reflecting the broader changes to the scheme. However, those who register for automatic payment (Auto Pay) can benefit from a tiered discount system that varies depending on their vehicle type.
Electric car owners registered for Auto Pay will now pay £13.50 daily, a 25% reduction from the standard rate. Electric vans, HGVs, and quadricycles receive a more generous 50% discount. These reduced rates represent a middle ground between the previous complete exemption and the full charge faced by conventional vehicles.
Looking Ahead to 2030
The discount structure is set to tighten further from March 2030. At that point, electric cars will see their discount reduced to just 12.5%, while electric vans, HGVs, and quadricycles will drop to 25% relief, signalling a gradual shift toward full-price parity across all vehicle types. This change mirrors the broader trend of EV incentives being phased out.
Residents' Discount Changes
The scheme also introduces new rules for local residents. Those who already benefit from the residents' discount prior to March 1, 2027, will retain their existing 90% reduction regardless of fuel type. However, new applicants after this date will only qualify for the 90% discount if they drive an electric vehicle, further incentivising the switch to cleaner transport.
The Success Story Behind the Changes
Since the cleaner vehicle discount launched in 2019, London has witnessed a dramatic surge in EV adoption. The number of registered electric vehicles in the charging zone has increased nearly sixfold, from approximately 20,000 to over 116,000 by mid-2025. By year-end, electric vehicles are projected to represent close to one-fifth of all traffic in the zone.
Transport for London estimates that without these pricing adjustments, the removal of the complete EV exemption could result in more than 2,000 additional vehicles using the zone during peak hours on an average weekday, potentially undermining the scheme's original environmental objectives.
