Ending Congestion Charge exemptions will slow EV adoption, fleets warn Mayor
7 July 2025
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Natalie Middleton
Plans to end Congestion Charge electric vehicle exemptions from 2026 could slow down EV adoption and jeopardise work to improve air quality in London. More than 25 fleets,
Plans to end Congestion Charge electric vehicle exemptions from 2026 could slow down EV adoption and jeopardise work to improve air quality in London.
The open letter has been launched by Electric London, a new coalition campaigning to drive EV momentum in London
New proposals from Transport for London, set out in a new public consultation last month and planned to take effect from January 2026, would hike the daily charge from £15 to £18 but would also end the current full exemptions for electric vehicles..
Currently, electric vehicles are entitled to a 100% discount under the Cleaner Vehicle Discount (CVD) subject to registration with TfL.
This scheme ends on 25 December 2025 and TfL is planning two phases of new rules.
From 2 January 2026, electric vans, HGVs, light quadricycles and heavy quadricycles registered for Auto Pay would get a 50% discount, while electric cars registered for Auto Pay will get 25%.
From 4 March 2030, these fall to 25% and 12.5% respectively.
While City Hall said the changes were vital to keep London moving by reducing congestion, signatories of the open letter – including the AA, DPD, Openreach, Polestar, Uber, Centre for Net Zero, Green Alliance, Greenpeace and the GMB union – have spotlighted the impact.
They warn that drivers providing essential goods, services and transport in central London could see additional costs of up to £3,000 per year for regular drivers, which will be shouldered by London households and businesses.
The letter highlights that these increased costs threaten to reverse London’s progress, and could prompt a backslide to petrol and diesel vehicles. Investment in charging infrastructure could also be put at risk, just as the city needs to accelerate to meet its 2030 net zero goals.
Despite the progress already made, the coalition points out that London still has a long way to go. More than a third of new cars being registered in the city are now electric, while only 3% of vans are electric. Supported by the CVD, around 30% of private hire vehicles – which represent some of the highest-mileage drivers in the city – are now electric, a level of progress that could be put at risk by the proposed rollback.
The open letter has been launched by Electric London, a new coalition campaigning to drive EV momentum in London and maintain the capital’s world-leading status. In addition to maintaining city level incentives such as the CVD, the coalition will also campaign to ensure equal access to affordable charging and to make EVs more accessible for all Londoners.
Clive Selley, CEO of Openreach, said: “As one of the UK’s largest fleet operators, we’re proud to be leading the shift to electric vehicles – with nearly 5,000 EVs already on the road – helping to cut emissions and improve air quality in London and beyond.
“Incentives such as the Cleaner Vehicle Discount have played a crucial role in making this progress possible. Reducing this support by half risks slowing momentum just as adoption is accelerating. Continued support is vital to overcoming barriers and keeping fleets like ours moving toward a cleaner, more sustainable future.”
Greg Sage, director of corporate affairs and ESG at Royal Mail, said: “We fully support the Coalition’s call for the Mayor to strengthen his commitment to electric vehicles so London remains at the forefront of the transition to EVs. As the UK’s largest electric delivery fleet operator, we believe that sustained investment in the EV transition is essential not only for protecting the environment, but for supporting the wellbeing of our people and the communities we serve across London.”
Charging firms have also lent their support to the call to maintain the Cleaner Vehicle Discount.
Guy Bartlett, CEO of Believ, said: “As a result of the positive and bold policies supporting EV adoption, London’s air is becoming cleaner and its residents healthier. For London and the UK to truly reach our net zero goals and continue to improve air quality, we must maintain these incentives and continue investing in the infrastructure that makes driving electric accessible and affordable for everyone.”