London’s Transport for London ended the electric vehicle exemption from the Congestion Charge on January 2, 2026 – marking a shift in the city’s approach to managing traffic in central London.
The charge applies to central London from 7am to 6pm on weekdays and midday to 6pm on weekends and bank holidays. Electric vehicles had been exempt since the program’s launch in 2003.
Mayor Sadiq Khan announced the change last November, citing the need to reduce traffic as electric vehicle numbers increase on London’s roads.
City Hall projects that without these changes, an additional 2,000 vehicles per day would enter the congestion zone. The charge itself increased from £15 to £18 on January 2 – its first price hike since 2020.
Electric vehicles registered for Transport for London’s Auto Pay system receive a 25% discount. This brings the daily cost down to £13.50, or £94.50 per week.
The policy includes future changes designed to favor electric vehicle adoption.
Starting March 2027, London residents will see their current 90% Congestion Charge discount become exclusive to electric vehicle owners. Non-resident discounts will drop from 25% to 12.5% by 2030.
Industry Response Splits
The decision has divided the electric vehicle industry, with charge point operators and finance companies taking different positions on the policy’s impact.
Be.EV CEO Asif Ghafoor criticized Khan’s approach, arguing the mayor hasn’t provided meaningful incentives to offset the new costs.
“The Mayor’s stated aim is clean air, yet the reality is a growing list of disincentives for driving cleaner vehicles without any meaningful incentives in return. If the Government wants real progress, both regional and national policy need to align clean air ambitions with practical incentives.”
Ghafoor called for policies that make electric driving more accessible rather than more expensive.
“Strong policy signals, from purchasing to charging to parking, matter. Right now, London is sending entirely the wrong ones.”
Car finance lender Carmoola took a more optimistic view, pointing to strong electric vehicle adoption across the UK.
381,000 new electric vehicles hit UK roads last year – more than any other European country. Used electric vehicle sales grew 44.4% in November 2025, with electric outselling other powertrains.
Carmoola CEO Aidan Rushby said the exemption’s end doesn’t change the broader electric vehicle trend.
“London scrapping the Congestion Charge exemption for electric cars will no doubt raise eyebrows, but it doesn’t change the bigger picture. EVs are here to stay, and getting behind the wheel of an electric car is more affordable than ever, driven by a competitive used-car market and lower running costs than petrol or diesel vehicles.”
Rushby highlighted that depreciation creates opportunities for drivers considering used electric vehicles.
He noted the continued discount for Auto Pay-registered vehicles makes the policy change less concerning than it initially appears.
“EVs are now so firmly part of everyday life that it’s no surprise they’re being brought in line with other vehicles on congestion charges – and for many, the used market remains the smartest and most cost-effective way to go electric.”
