London will raise its daily Congestion Charge from £15 to £18 beginning 2 January 2026, ending the full exemption for electric vehicles while introducing a tiered discount system intended to manage increasing traffic volumes. Transport for London (TfL) and the Mayor of London confirmed the structure, which replaces the Cleaner Vehicle Discount introduced in 2019.
Under the revised scheme, electric vans, HGVs and quadricycles registered for Auto Pay will be eligible for a 50% discount, while electric cars and Private Hire Vehicles will receive a 25% reduction. TfL said a second phase beginning 4 March 2030 will adjust these discounts to 25% and 12.5% respectively. The policy, first outlined in May, has now been formally approved.
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The Congestion Charge covers central districts such as Soho, Mayfair, Piccadilly Circus, Covent Garden, Westminster and Waterloo Station. Officials argue the changes are necessary because EV uptake in the charging zone has risen sharply — from around 20,000 vehicles in 2019 to more than 116,000 in 2025. TfL estimates that without the update, “there could be more than 2,000 additional vehicles driving during operating hours in the zone on an average weekday,” undermining the scheme’s effectiveness.
Mayor Sadiq Khan said: “Keeping London moving by reducing congestion is vital for our city and for our economy. We must support Londoners and businesses to use more sustainable travel, so I’m pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles.”
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Additional measures will modify the Residents’ Discount to support long-term EV adoption. Residents registered before 1 March 2027 will retain the 90% discount regardless of vehicle type, while new applicants after that date will only qualify if they own an EV. Low-income and disabled residents receiving eligible benefits will retain access to the discount until March 2030 without needing an electric vehicle.
TfL will also introduce a 100% discount for “back to base” electric car-club vehicles hired and returned within the zone, aiming to broaden access to shared EVs. Procedural changes will allow future charge adjustments to align with Tube fare increases without public consultation. According to TfL Director of Strategy Christina Calderato, “The changes to the Congestion Charging scheme play a key role in allowing us to keep traffic and congestion under control, while enabling drivers, businesses and other organisations to continue transitioning to cleaner vehicles.”