Major changes are coming to London's Congestion Charge in 2026, marking a significant shift in the city's traffic management strategy. Transport for London (TfL) has confirmed that electric vehicles will lose their exemption from the charge as part of broader efforts to reduce vehicle numbers in the city centre.
New Charges and Discounts for Electric Vehicles
From January 2, 2026, the Cleaner Vehicle Discount that previously exempted electric vehicles will be discontinued. Instead, electric car drivers will receive a 25% discount, reducing their charge to £13.50 per day. Owners of electric vans and lorries will benefit from a larger 50% discount, paying just £9 to enter the zone.
These discounts are not permanent, however. TfL has outlined a phased reduction plan that will see discounts for electric vans and lorries drop to 25% by March 2030, while electric car discounts will decrease to just 12.5%.
Increased Standard Charge and Resident Benefits
The standard Congestion Charge for non-electric vehicles will also see its first increase since 2020, rising from £15 to £18 from January 2. This represents a 20% increase for drivers of petrol and diesel vehicles entering central London.
Residents living within the Congestion Charge zone will continue to receive substantial support, with discounts of up to 90% available. However, a significant change will affect new residents: those moving into the zone after March 1, 2027 will not qualify for the discount unless they drive an electric vehicle.
Official Statements on the Changes
London Mayor Sadiq Khan defended the changes, stating: "Keeping London moving by reducing congestion is vital for our city and for our economy. While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose." He warned that maintaining the status quo would see approximately 2,200 more vehicles using the charging zone on an average weekday next year.
Christina Calderato, TfL's Director of Strategy, emphasised the need for balanced measures: "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 announcement also included support from climate charity Possible, with Sustainable Transport Manager Izzy Romilly welcoming the decision to tie the Congestion Charge to public transport fares. "It's only right to make sure that public transport doesn't get disproportionately more expensive than driving," she commented.
Discounts of up to 100% will continue to be available for low-income and disabled Londoners, ensuring that the most vulnerable residents remain protected from the financial impact of these changes.
