Changes ahead for London Congestion Charge - but EVs retain a discount

The discounted entry for Electric Vehicles (EVs) into London's Congestion Charge zone, which was scheduled to end in 2025, has been extended from 2 January 2026.

Following public consultation, the Mayor of London, Sadiq Khan, and Transport for London (TfL) have announced revised discounts for the London Congestion Charge

• Electric Vans, HGVs, and Quadricycles: The current 100% discount will be reduced to 50% for those registered for Auto Pay.
• Electric Cars: A 25% discount will apply for those registered for Auto Pay.

Simultaneously, the daily Congestion Charge will rise from £15 to £18 from 2 January 2026. TfL states this is the first increase since 2020 and is lower than the rate of inflation.

TfL justifies these changes as necessary to balance continued support for the shift to EVs with the Congestion Charge's effectiveness in managing traffic in central London. They estimate that without these adjustments, over 2,000 extra vehicles could be driving in the zone during operating hours on an average weekday.

Since the introduction of the Cleaner Vehicle Discount (CVD) in 2019, the number of registered EVs has soared from approximately 20,000 to more than 116,000 earlier this year—a nearly sixfold increase. EVs are projected to constitute close to 20% of all vehicles in the Congestion Charging Zone by the end of the year. The CVD was initially intended to run until 25 December 2025.

Fleets and businesses wanting to take advantage of the discounts on offer to EVs should check out our latest electric leasing offers.

Future Phases of the London Congestion Charge

• Phase Two (from 4 March 2030): Discounts will be reduced further: 25% for electric vans, HGVs, and quadricycles with Auto Pay, and 12.5% for electric cars with Auto Pay.
• Existing Residents’ Discount: Holders will retain the 90% discount for all vehicle types (including new/replacement, electric or otherwise).
• New Residents’ Discount Applicants (after 1 March 2027): The 90% discount will only apply to EVs.
• Support for Low-Income and Disabled Londoners: Discounts of up to 100% will continue for these groups.

Photo by Yukon Haughton on Unsplash