London Congestion Charge Plots 20 per cent Rise, EV Exemption Axe
28/05/2025 08:52 Share
London Congestion Charge Plots 20 per cent Rise, EV Exemption Axe
Transport for London has announced plans to hike the price of its central Congestion Charge by 20 per cent from 2026, while has also proposed removing the exemption reserved for electric vehicles.
Commuters driving a petrol/diesel-fuelled vehicle within the bounds of the Congestion Charge in the UK’s capital city must pay £15 each day they enter the zone, while battery-powered vans are exempt from the fees.
However, from 2 January 2026, a proposal has been submitted to increase the fee by 20 per cent to £18 per day, while the exemption for electric vans has been scrapped in favour of a ‘discount scheme’.
It means electric vans will be eligible for a 50 per cent discount over a period of four years – reducing the payment to £9 – before this is then lowered to 25 per cent (£13.50) from 4 March 2030.
TfL says a sharp increase in the number of electric cars on the road in London’s capital since the toll was last adjusted in 2020 is its reason behind the move, arguing the exemption of such vehicles risks an increase in traffic and congestion.
The move represents a shift in purpose for the Congestion Charge, which was originally introduced in 2003 amid concerns over pollution levels in the city. This new proposal instead puts congestion at the heart of plans to maintain the toll.
“It is timely to review whether a further increase is necessary in order to maintain the deterrent effect of the charge”, said the TfL statement.
“This increase would help to maintain the traffic management effects of the Congestion Charge scheme in central London, support the other aims of the Mayor’s Transport Strategy, and meet the Mayor’s aims to improve air quality in London, achieve a net zero carbon city by 2030 and cut congestion in the capital.”
Congestion Charge Rise Set To Impact Van Drivers
While the rise in electric car sales has been used to justify an increase in the congestion charge, the proposals will have arguably a greater impact on van drivers.
Sales of electric vans have remained sluggish and while the EV van sector is posting annual growths, battery-powered vehicles still only account for 8% of all van sales. It is a figure that threatens to scupper the UK government’s bid to become a net zero nation by 2030.
It goes some way to explaining why those who have invested in an electric van are being offered a discount.
However, the potential £9 fee would still amount to an extra £2,277 in annual running costs based on the average 253 working days in a year should you commute into London city centre on each of them.
London’s Congestion Charge currently covers approximately 8.1 square miles of the city centre.
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