The London Congestion Charge is expected to see some major revisions in the coming years, with a mixed outlook that ultimately remains encouraging for electric vehicle (EV) owners. While the full exemption currently enjoyed by EV drivers is on its way out, the introduction of new long-term discounts and a more streamlined process offers some consolation. In this article, we explore the forthcoming changes, their impact on EV users, and how they align with London’s broader transport and environmental ambitions.
Full Exemptions Ending: What’s New?
A key change on the horizon is the phasing out of the 100% exemption for electric vehicles. From 2026, a new tiered discount system will take its place:
- Electric vans and larger EVs will receive a 50% discount.
- Electric cars will benefit from a 25% discount.
These discounts are scheduled to remain in place until 2030, after which they will be further reduced: electric vans will qualify for a 25% discount, and electric cars just 12.5%.
Though this may feel like a setback for current EV drivers, who have so far been exempt entirely, it’s a notable improvement from earlier proposals that considered removing all discounts. This revised approach still promotes EV adoption while acknowledging their growing prevalence on London’s roads.
Streamlined System: A Win for EV Drivers
One of the most practical improvements is the automation of the discount process. At present, EV owners must register their vehicles manually to receive any discount, a task that is easily overlooked. From 2026, drivers enrolled in Auto Pay will have their discount applied automatically, using information from the DVLA.
This enhancement eliminates unnecessary admin and ensures eligible drivers don’t miss out. It’s a clear sign that City Hall is committed to making the system more user-friendly and accessible.
Revised Resident Discounts in the Congestion Charge Zone
Another key change affects residents living within the congestion charge zone. From 2027, the 90% discount will only be available to new applicants who own an EV. This effectively ties one of the city’s most generous transport perks to electric vehicle ownership.
For central London residents, this policy offers a fresh incentive to switch to an electric vehicle. Companies such as EV Sales offer a range of choices for residents to drive.
Policy Shaped by Advocacy
This new London Congestion Charge framework also reflects a level of responsiveness to advocacy efforts from the EV community. Industry voices such as the AA, Ocado and Openreach appear to have influenced the final proposals. Instead of withdrawing all benefits, City Hall has opted for a more measured approach that still encourages greener travel.
Such engagement between policymakers and stakeholders is essential for building trust and ensuring sustainable transport policy remains both effective and fair.
Rising Costs: The Less Welcome News
Despite the positive changes, there are some less favourable developments. EV owners will begin paying more than they do today. With the move from a full exemption to partial discounts, drivers will face increased daily costs for travelling through central London.
Compounding this, the Congestion Charge itself is set to rise to £18 per day. This means that, even with a discount, EV drivers could be paying up to £13.50 daily from 2026, depending on their vehicle category. These rising costs may dent the financial appeal of EVs, especially for those who frequently travel into the capital.
Looking ahead to 2030, further reductions in the discount mean the long-term savings will shrink even more. The assumption is that EVs will be the norm by then, but this shift in policy could dissuade those who are slower to adopt.
Compromise That is Balanced
Taken as a whole, the upcoming changes to the London Congestion Charge represent a pragmatic middle ground. The policy still rewards EV ownership, simplifies the process for claiming discounts, and supports the city’s long-term environmental goals. It also recognises the need to tackle congestion as well as emissions.
While existing EV drivers might view these changes as a step backwards, the future outlook for new EV owners remains positive. The discounts are still substantial, and the removal of administrative red tape will be a welcome relief. The principle remains clear: cleaner vehicles continue to enjoy notable benefits.
A Few Final Thoughts
If you’re already behind the wheel of an EV or considering making the switch, maybe through EV Sales, the new London Congestion Charge rules still offer a meaningful financial advantage. While the perks are not as generous as before, they remain far superior to those available to petrol and diesel drivers.
This shift in policy reflects London’s evolving efforts to balance environmental responsibility, fairness, and urban traffic management. EVs are still being supported, just not quite as generously. In a maturing market, that could be the right approach.
*All information correct as of 4 June 2025
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