Drivers in London set to pay even more for the congestion charge next year

The London congestion charge will rise soon, with electric vehicle drivers also facing a daily fee for the first time, which campaigners have called a ‘backward step.’

Petrol, diesel and EV drivers will soon have to dish out more money to enter the Congestion Charge zone when the fee goes up.

The Congestion Charge will increase from January in a bid to prevent thousands of cars from clogging up the roads even further, including for EVs, which have driven for free.

Here is a roundup of what the upcoming changes mean for drivers.

How is the Congestion Charge changing for EVs?

Petrol and diesel vehicles have been liable to pay for years, while EV drivers have enjoyed a 100% discount – until now.

From January 2, 2026, EV owners will have to pay £13.50 a day when entering the zone marked with the red and white letter C signs.

The fee for petrol and diesel cars will go up from £15 to £18.

EV drivers can still get a discount if they sign up online for the London Auto Pay, which automatically charges the amount from a bank account.

The discount will be 50% for electric vans and lorries, and 25% for electric cars. The discounts will be further cut from March 4, 2030 – 25% discount for electric vans, and 12.5% discount for electric cars.

Until now, the EV discount has been fully incentivised by the Cleaner Vehicle Discount scheme (CVD). The entire discount is due to end in December, but the Mayor of London said he will continue to incentivise it to offer a partial discount.

Driving an electric car in the congestion zone in the future could cost an estimated £3,000 a year.

Some residents, like those on a low income, could still get a higher congestion charge discount. You can find who is eligible and how to apply here.

EV drivers outside London also face a higher bill if the expected 3p per mile charge is announced in the autumn budget.

Why is London Congestion Charge going up?

TfL says around 2,200 extra cars could be on the roads every day if the Congestion Charge is not increased and ‘fit for purpose.’

But critics warned it risks hampering London’s leadership position in electrification and net zero progress, and will hurt workers and businesses who rely on EVs.

Sadiq Khan, Mayor of London, 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.

‘We must support Londoners and businesses to use more sustainable travel, so I’m pleased that substantial incentives will remain in place for Londoners who switch to cleaner vehicles, as we work to build a greener and better London for everyone.’

The Electric London Coalition, representing more than 30 organisations, said the City Hall needs to support driver confidence, especially in the face of the ‘double hit’ from the expected tax rises in the budget.

Edmund King OBE, AA’s president, said: ‘This is a backward step which sadly will backfire on air quality in London. Our AA UK EV Readiness Index shows that many drivers are not quite ready to make the switch to electric vehicles, so incentives are still needed to help them over the line.

‘The Mayor needs to reconsider to continue to help more essential van and car journeys in the capital go electric.’

Steve Garelick, from the GMB Union, said: ‘Rolling back the Cleaner Vehicle Discount is an affront to working Londoners who answered City Hall’s call to go electric. This decision risks undoing years of progress, which neither our city nor its workers can afford.

“Couriers, private hire drivers, key workers – the people that keep London moving – are being punished for doing the right thing.

“Private hire drivers already pay substantial costs to TfL and operators to work in London. It is deeply unfair to charge them even more for simply doing their job.

Data from traffic analyst Inrix has ranked London as Europe’s most gridlocked city.

Meanwhile, the take-up for EVs has been on the rise as electric cars are no longer prohibitively expensive, with more than a million EV cars currently on Britain’s roads.

Up to 11 million UK motorists could drive electric by 2030, and EV charging points are now available on most streets and forecourts.

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