Changes proposed to London Congestion Charge to encourage EV uptake

Transport for London is seeking views on a number of changes to the Congestion Charge to help keep London moving, encourage the uptake of electric vehicles and promote sustainable travel across the capital.

The news comes on the day that it was revelealed that the Congestion Charge is set to rise to £18 on 2 January 2026, the first increase, since June 2020.

Drivers of electric cars, who currently are able to travel free of charge in the zone, were expecting to start paying the full charge from December but will now receive a 25% discount provided they are registered for auto pay. HGVs and vans will get a 50% discount.

TfL is also proposing to raise the levy annually in line with public transport fares, which usually increase with inflation.

Every year, congestion costs London billions of pounds – in 2024 alone vehicle congestion cost the capital £3.85 billion, averaging £942 per driver. This heavily impacts businesses, bus customers and other essential services. The charge is in place to manage traffic and congestion in the heart of London – the central one per cent of the city – at the busiest times of day where road space is most constrained. TfL is consulting on changes to the Congestion Charging scheme to ensure that it remains efficient at reducing congestion for years to come, so that central London can continue to thrive.

These new proposals, launched in a public consultation starting today until 4 August 2025, will work to continue managing traffic in central London, and contribute to the Mayor’s long-term vision for a cleaner, greener London, through increased uptake in electric vehicles and more journeys taken by public transport.

To provide further support for people and businesses who have invested in, or are considering switching to an electric vehicle, TfL is proposing a new Cleaner Vehicle Discount from January 2026 that has a higher discount for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans for commercial purposes. The discount will change over the timeframe outlined in the consultation to give support to those making the green transition, while also keeping London moving.

Oliver Lord, UK Head of Clean Cities Campaign, said: “We’ve record numbers of polluting diesel vans in the UK so I’m thrilled the Mayor is helping to reward businesses that invest in greener fleets. By prioritising electric and pedal powered freight, we will all benefit from cleaner air and quieter streets. There’s no use having a Congestion Charge that nobody pays so I think today’s proposals strike a fair balance between its core aims around traffic and congestion, whilst also advancing our environmental goals