Transport for London (TfL) is pushing ahead with changes to increase the Congestion Charge and levy fees on EV drivers for the first time.

The changes, proposed this spring and now confirmed, will take effect from 2 January 2026 to ensure the Congestion Charge “remains effective at managing traffic and congestion within central London”.

From this date, the daily Congestion Charge will increase from £15 to £18. TfL said it was a lower than inflation increase and the first rise since 2020. TfL will also be able to increase the Congestion Charge in line with Tube fares (or inflation plus one per cent or a lower amount) without consultation.

Alongside this, the Cleaner Vehicle Discount (CVD), which ends on 25 December 2025, is also being axed. Currently, electric vehicles are entitled to a 100% discount under the CVD, subject to registration with TfL.

The first phase of changes cuts this to a 50% discount for electric vans, HGVs and quadricycles registered for Auto Pay, along with a 25% discount for electric cars registered for Auto Pay.

That lasts until 4 March 2030, when the discount falls to 25% for electric vans, HGVs and quadricycles and 12.5% for electric cars registered for Auto Pay in the second phase of changes.

The new rules will mean thousands of EVs will now incur the Congestion Charge in part. Under the first wave of changes, drivers of electric vans will pay £9 and electric car drivers will pay £13.50.

‘Back to base’ electric car club vehicles get an exemption with a new 100% discount, applying to car club EVs that are hired from and returned to the same marked parking space within the zone. TfL said this would give residents – including those on low incomes without EV access – the option to use car club EVs for essential car journeys.

There’s changes to the current residents’ discount too. From 1 March 2027, new applicants to the scheme will only get the current 90% discount for EVs. Drivers in receipt of the discount prior to this date will retain their 90% discount, regardless of vehicle fuel type.

But following a public consultation, TfL is providing further support for low-income and disabled residents receiving certain benefits, so that they can continue to apply for the residents’ discount until March 2030 without their vehicle needing to be electric.

Mayor of London Sadiq Khan said the changes were required to stop around 2,200 additional vehicles driving during operating hours in the zone on an average weekday, leading to more queues and delays.

Christina Calderato, TfL’s director of strategy, added: “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. The changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport.”

But Europcar said removal of the 100% exemption for EVs was “disappointing” and added that the London Mayor was sending “mixed messages about net zero”.

Tom Middleditch, sustainability spokesperson, commented: “On the one hand, private motorists and businesses are being urged to make the switch to zero tailpipe emissions; on the other the incentives to make the switch are being rapidly removed, although the market is still relatively immature. There seems to be a battle between clean air and revenue – and it feels like clean air is going to be the loser.

“Whilst the electric car parc is growing – the latest SMMT figures show fantastic growth in used EV sales – the reality is that electric van adoption is woefully behind. Businesses of all sizes need to be encouraged to transition to electric for their commercial vehicle fleets, but with the proposed reduction in EV discount for vans and lorries, organisations that are already juggling a multitude of additional operational costs are likely to see the removal of the exemptions as a real deterrent.”

Middleditch urged the Mayor to reconsider the decision as he warned that the introduction of charges for EVs will “leave more polluting vehicles on London’s roads which will do nothing for the clean air targets”.

The Sustainable Urban Freight Association also said it was “deeply disappointed” by the decision to introduce congestion charges for electric vehicles.

The trade association for freight operators pointed to TfL’s own data that shows only 2.1% of all vehicles on the road in inner London are electric vans – and said introducing a congestion charge for them would undermine the business case for electrifying freight and lead to more diesel vans on London’s roads.

“Travelling by car in London is a choice. Transport by van and HGV is often not. Other clean freight options can take on some of the mileage from vans and it is disappointing that TfL did not use this announcement to take any positive steps to incentivise uptake of other freight options such as cargo bikes, which can both reduce congestion and pollution across the city,” the industry body said.

Kirsten Zoe Smith, co-chair of SUFA and net zero strategist at Recorra, added: “Freight operators across London want to transition to zero-emission vehicles. They currently face significant cost barriers to doing so, from the difficulties of securing grid connections, to weight regulations and energy costs. Introducing a congestion charge for electric vans and HGVs will at best slow that progress, and at worst reverse it. Penalising operators trying to do the right thing will not reduce congestion, but make it harder for them, and others, to make the shift to zero emissions fleets.”