London Congestion Charge Increases and New Electric Vehicle Fees

Starting January 2, 2026, London’s congestion charge will rise from £15 to £18, marking a 20% increase and the first adjustment in six years. This change will also introduce fees for electric vehicles (EVs), which previously enjoyed a full exemption. Under the new structure, electric cars will incur a 25% discount, paying £13.50 daily, while electric vans and heavy goods vehicles (HGVs) will pay £9, a 50% discount. By March 2030, these discounts will further decrease to 12.5% for electric cars and 25% for vans and HGVs.

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Transport for London (TfL) argues that these changes are necessary to manage rising traffic levels. With the number of registered EVs in London increasing almost sixfold since 2019, TfL estimates that without these adjustments, an additional 2,200 vehicles could enter the congestion zone on an average weekday, exacerbating congestion issues that already cost the city £3.85 billion annually.

Changes confirmed to congestion charge with 100% EV discount axedLondon Congestion Charge rise aims to tackle traffic levels, but creates controversyLondon Congestion Charge rises to £18 with EV discounts reducedGB NewsTfL criticised for Congestion Charge hit on EVsThe GuardianThe Independent

Mayor Sadiq Khan emphasized the need for these changes, stating, “Keeping London moving by reducing congestion is vital for our city and for our economy.” He noted that maintaining the status quo would lead to increased vehicle numbers in the congestion zone. TfL’s Director of Strategy, Christina Calderato, echoed this sentiment, highlighting the importance of effective traffic management for a thriving city.

TfL criticised for Congestion Charge hit on EVs

The new congestion charge structure has faced significant backlash from various stakeholders. Edmund King, president of the AA, criticized the changes as a “backward step” that could negatively impact air quality in London. He argued that many drivers are not ready to transition to electric vehicles and that incentives are still necessary. The GMB union's Steve Garelick described the decision as an affront to working Londoners who have switched to EVs, warning it could undo years of progress in promoting cleaner vehicles.

The Independent

Collaborative Mobility UK (CoMoUK) also expressed concerns, stating that the changes could undermine the viability of car-sharing schemes in London. Richard Dilks, CoMoUK’s chief executive, noted that while some EV car club vehicles will retain a full exemption, this only applies to a small number of vehicles, leaving many shared cars subject to the new fees.

London Congestion Charge rise aims to tackle traffic levels, but creates controversy

While TfL maintains that the changes are essential for managing congestion, critics argue that imposing charges on EVs may deter their adoption and lead to more polluting vehicles remaining on the roads. There is also speculation about potential additional charges for EVs across the UK, as the government considers a pay-per-mile scheme.

TfL criticised for Congestion Charge hit on EVs

The adjustments to the congestion charge are set to take effect in January 2026, with further changes to the residents’ discount structure planned for March 2027. The ongoing debate surrounding these measures highlights the tension between promoting electric vehicle adoption and managing urban traffic effectively. As London continues to grapple with congestion and air quality issues, the impact of these changes will be closely monitored by both supporters and critics.

London Congestion Charge rises to £18 with EV discounts reduced