From January 2026, electric vehicles (EVs) will no longer be exempt from London’s Congestion Charge, marking a significant shift in the city’s transport policy. The move, announced by Mayor Sadiq Khan, will see EV drivers pay £13.50 for cars and £9 for vans to enter the inner London zone. Previously, all EVs, including hydrogen fuel cell vehicles, benefited from a full exemption under the Cleaner Vehicle Discount.
Rationale Behind the Change
The decision comes amid growing concerns about rising congestion levels in central London. Officials predict that without the charge, an additional 2,200 vehicles would enter the zone daily by 2026. Currently, EVs account for 20% of all vehicles entering the Congestion Charge zone. According to Transport for London (TfL), congestion cost London businesses £3.85 billion last year alone.
“Keeping London moving by reducing congestion is vital for our city and for our economy,” Mayor Khan stated. “While the Congestion Charge has been a huge success since its introduction [in 2003], we must ensure it stays fit for purpose.”
Financial Implications and Existing Discounts
Alongside the introduction of charges for EVs, the Congestion Charge for internal combustion engine (ICE) vehicles will increase from £15 to £18. However, residents within the zone will continue to receive discounts of up to 90%. New residents moving to the zone after March 1, 2027, will only qualify for the discount if driving an EV.
Industry Response and Criticism
The move has drawn criticism from automotive industry leaders, who argue it disincentivizes EV adoption at a time when manufacturers are legally mandated to increase EV sales under the Zero Emission Vehicle (ZEV) mandate. AA president Edmund King called the decision “a backward step which sadly will backfire on air quality in London.” He argued that continued incentives are needed to encourage drivers to switch to electric vehicles.
Broader Context: UK Road Tax Plans
This announcement follows the UK government’s recent proposal for a pay-per-mile road taxing system for EVs. Combined, these measures signal a broader shift away from EV subsidies and toward road usage-based charges. The timing raises questions about the government’s commitment to encouraging EV adoption, especially as manufacturers grapple with ZEV mandates and rising costs.
The Congestion Charge changes are set to take effect on January 2, 2026. The move underscores London’s evolving approach to urban mobility, balancing environmental goals with economic realities. The long-term impact on EV adoption rates and overall congestion levels remains to be seen
