Major Shake-Up for London's Congestion Charge
Drivers in London are facing significant increases to the daily congestion charge, with electric vehicle owners set to pay the fee for the first time. From January 2026, the cost of driving into central London's Congestion Charge zone will rise, marking what campaigners have labelled a 'backward step' for the city's environmental progress.
What's Changing for Drivers?
The standard congestion charge for petrol and diesel vehicles will increase from £15 to £18 per day. Meanwhile, electric vehicle drivers, who have previously enjoyed a 100% discount, will now need to pay £13.50 daily when entering the zone marked with distinctive red and white 'C' signs.
This change takes effect from 2nd January 2026, ending the complete exemption for EVs under the Cleaner Vehicle Discount scheme. However, partial discounts will remain available for those who register for London Auto Pay, an automated payment system.
The discount structure varies by vehicle type:
- Electric vans and lorries: 50% discount
- Electric cars: 25% discount
These discounts will be further reduced from 4th March 2030, dropping to 25% for electric vans and 12.5% for electric cars. For regular commuters driving electric cars, this could mean annual costs of approximately £3,000 to access the congestion zone.
Why the Increase?
Transport for London (TfL) justifies the increases by warning that without them, approximately 2,200 additional cars could appear on central London roads each day. They argue the charge needs to remain 'fit for purpose' in managing congestion.
Mayor of London Sadiq Khan stated: '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.'
However, the decision has faced strong criticism from multiple quarters. The Electric London Coalition, representing over 30 organisations, expressed concern about the impact on driver confidence. Edmund King OBE, AA's president, called the move 'a backward step which sadly will backfire on air quality in London.'
Steve Garelick from the GMB Union highlighted the impact on working Londoners: 'Rolling back the Cleaner Vehicle Discount is an affront to working Londoners who answered City Hall's call to go electric. This decision risks undoing years of progress.'
The changes come as London maintains its position as Europe's most gridlocked city according to traffic analyst Inrix, despite growing electric vehicle adoption with over a million EVs now on Britain's roads.
