Major changes to London’s Congestion Charge will take effect on January 2, 2026, with substantial adjustments aimed at reducing the number of vehicles in the city center. The standard charge for non-electric vehicles will rise from £15 to £18. In a significant shift, electric vehicles (EVs) will no longer enjoy exemptions, transitioning from the Cleaner Vehicle Discount to a new charging structure.
From the specified date, electric van and lorry drivers will benefit from a 50% discount when entering the Congestion Charge zone, while electric car drivers will receive a 25% discount. Consequently, electric vehicles will incur a charge of £13.50 to enter the zone, while electric vans will be charged £9. By March 2030, these discounts are set to decrease further, with electric vans and lorries receiving a 25% discount and electric cars a 12.5% discount.
Impact on London Residents and Businesses
Residents within the congestion zone will experience reductions of up to 90% on their charges. However, those relocating to the zone after March 1, 2027, will not qualify for discounts unless they own an electric vehicle. Additionally, discounts of up to 100% will remain available for low-income and disabled Londoners, ensuring continued support for vulnerable groups.
Sadiq Khan, the Mayor of London, emphasized the importance of these changes for the city’s future. He remarked, “Keeping London moving by reducing congestion is vital for our city and for our economy.” Khan noted that maintaining current congestion levels would result in an estimated 2,200 more vehicles using the zone daily by next year, underscoring the necessity for reform.
Christina Calderato, the Director of Strategy at Transport for London (TfL), echoed the Mayor’s sentiments. She stated, “If we want to ensure that London remains a thriving city for everyone to enjoy, then it’s vital that traffic and congestion is kept under control and managed effectively.” Calderato highlighted the need to balance the transition to cleaner vehicles with the needs of drivers and businesses.
Support for Sustainable Transport
In addition to these changes, the announcement also touched on tying congestion charges to public transport fares, a move praised by Izzy Romilly, Sustainable Transport Manager at climate charity Possible. Romilly noted, “It’s only right to make sure that public transport doesn’t get disproportionately more expensive than driving.” She expressed support for new initiatives aimed at electric car clubs and emphasized the need for investment in accessible public transport.
These changes to the Congestion Charge scheme are part of London’s broader strategy to promote sustainable transport and reduce air pollution. As the city prepares for these adjustments, officials remain focused on building a cleaner and healthier environment for all Londoners.
