London Congestion Charge: EV discount scrapped AND daily price increases

Drivers will have to pay £18 per day to drive into London from 2 January next year, with smaller discounts for electric cars.

Transport for London (TfL) says the changes will discourage 2,200 extra cars from driving in the capital on an average weekday.

Although unlikely to be popular with drivers, the rise from £15 to £18 is the first increase since 2020. However, the reduced discount for electric vehicles will be controversial at a time when mixed messages around electric cars risk slowing their uptake.

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Today, electric cars receive a 100% discount on the charge. From 2 January, the discount will be reduced to 25%, meaning that electric car drivers will have to pay £13.50 to drive in London. Electric vans, HGVs and quadricycles will receive a 50% discount.

From 4 March 2030, the discounts will reduce further to 12.5% for electric cars and 25% for other electric vehicles.

The lower rates will only apply to drivers who register for the Auto Pay system, which takes payments automatically. Any EV driver who doesn’t register for Auto Pay will be charged the same amount as someone driving a petrol or diesel car.

Bigger discounts will remain for low-income and disabled Londoners.

Drivers who live within the Congestion Charge zone can continue to receive a 90% discount on the charge, irrespective of the type of car they drive. New applicants for this discount after 1 March 2027 will need to drive an EV for the reduction to apply.

Discounts of 100% will apply to ‘back to base’ electric hire vehicles which are picked up from and returned to the same designated parking bay within the zone.

Further increases look set to follow beyond those confirmed in today’s TfL announcement. In future, price rises could be made in line with increased Tube fares (or inflation plus 1%, or a lower amount). The intention is to ensure that public transport does not become disproportionately expensive compared with driving into the capital.

TfL’s director of strategy, Christina Calderator, said: “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 changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport.”

London’s major, Sadiq Khan, has also defended the changes: “While the Congestion Charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the Congestion Charging zone on an average weekday next year.”

However, the changes have been criticised by some, especially the reduced discounts for electric vehicles. The managing director of the Polestar UK, Matt Galvin, said: “Whilst we are pleased to see that the Mayor of London is pushing to reduce inner city emissions, to truly accelerate electric vehicle adoption, all EVs should be exempt from these charges, and parking discounts in central London must return.

“The right mix of penalties for polluting vehicles and perks for EVs will fast-track progress towards 2035 net-zero targets, clean up London’s air, and propel the city to the forefront of green transport globally.”

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