London Congestion Charge hiked to £18 per day with EV discounts slashed

London mayor Sadiq Khan has confirmed the city's Congestion Charge will increase to £18 per day from 2 January 2026 – a £3 hike over the current fee set in 2020.

The changes will also introduce subsequent annual increases to the charge in line with rising Underground fares in order to incentivise the use of public transport.

Currently, electric car drivers who use Auto Pay receive a 100% discount, meaning they're completely exempt from paying the fee. However, this will change under the new rules, with the discount slashed to just 25%. This means they'll be charged £13.50 from 2 January 2026 – just £1.50 less than what drivers of petrol or diesel cars currently pay. 

Drivers of electric vans, electric HGVs and electric quadricycles will receive a 50% discount, meaning they'll pay £9 per day.

From 4 March 2030, both discounts will be halved, meaning electric car drivers in Central London will pay £15.75 per day, while van drivers will pay £13.50 per day.

The current 90% discount for residents living within the Congestion Charge zone will remain in place for those who apply for the discount before 1 March 2027, regardless of fuel type. However, for drivers who apply after that date, the 90% discount will only apply to EVs. That means that drivers of older vehicles could be hit with a daily bill of £30.50 should they drive their car in both the Congestion Charge (£18) and Ultra Low Emission Zones (£12.50).

Transport for London (TfL) has confirmed that there will be additional support for low-income and disabled residents in receipt of certain benefits, which will allow them to apply for the Residents' Discount until March 2030 regardless of what type of car they drive.

TfL claims that the increases will lead to 2200 fewer vehicles using roads within the Congestion Charge zone during weekdays.

Sadiq Khan said, "Keeping London moving by reducing congestion is vital for our city and for our economy. While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.

But the move will hit electric car drivers in the pocket — at a time when EV drivers are reeling from plans to introduce pay-per-mile road pricing. The relaxation of congestion charging was one of the key pillars of What Car?’s EV manifesto, a plan designed to help legislators speed the adoption of electric cars in the UK. 

What Car? editor, Steve Huntingford said: “These to Congestion Charge increases fly in the face of attempts by the automotive industry and the Government to encourage drivers to switch to electric vehicles.  

“Although there's a 25% discount for EV owners who register with its Auto Pay service, it will still means an additional weekly cost of £94.50 for any EV being driven through the Congestion Charge zone every day during its operating hours.

“Our EV Manifesto, launched last year, urges TfL and other regional authorities to retain full exemption for EVs from congestion and other regional low-emission zone charges. 

“Keeping the full exemption for EVs is the right thing to do because it helps to incentivise the transition to EVs. Although having more EVs on the roads may increase congestion, they are far better for the environment because they have no tailpipe emissions.” 

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