Drivers in the capital are facing a significant change to the cost of entering central London, as the Congestion Charge increases for the first time in years and electric vehicles lose their full exemption.
New Charges and Reduced Discounts for EVs
From today, Friday 2 January 2026, the daily Congestion Charge rate has risen from £15 to £18 for payments made in advance or on the day of travel. The charge jumps to £21 if paid by midnight on the third day after travel. This is the first increase to the standard fee since 2020.
In a major policy shift announced by Mayor Sir Sadiq Khan in November, drivers of pure battery-electric vehicles (EVs) are now required to pay the charge. Previously eligible for a 100% discount, their benefit has been dramatically reduced. As of today, a new Cleaner Vehicle Discount applies, offering only a 25% discount for electric cars and a 50% discount for electric vans and lorries.
This means electric car drivers will pay £13.50 to enter the zone, while electric van owners will be charged £9.
Future Reductions and Resident Rules
The discounts for cleaner vehicles are set to shrink further in the coming years. From 4 March 2030, the discount will be cut to just 12.5% for cars and 25% for vans and lorries.
Residents living within the Congestion Charge zone can still receive reductions of up to 90%. However, a new rule states that anyone moving into the zone after 1 March 2027 will not be eligible for this resident discount unless they drive an electric vehicle.
The charge, introduced in 2003, applies to an area of central London between 7am and 6pm on weekdays, and between noon and 6pm on weekends and bank holidays.
How to Pay and Secure the EV Discount
For UK-registered vehicle owners to automatically receive the new Cleaner Vehicle Discount, Transport for London (TfL) states you must first register for a London Road User Charging account and set up Auto Pay. You then need to ensure the electric vehicle you drive in the zone is added to your Auto Pay service.
There is no fee to set up Auto Pay or to add vehicles, and no separate application for the discount is needed. If you are already registered with correct vehicle details, no action is required—the discounted rate will be applied automatically.
Owners of electric vehicles registered outside the UK must also register their vehicle with TfL and be on Auto Pay to qualify for the discount.
Eligibility for the Cleaner Vehicle Discount is currently limited to electric cars, vans, HGVs and quadricycles. Other electric vehicles like buses or minibuses may qualify for different discounts, such as the 9+ seater discount.
Failure to pay the charge by midnight on the third day after travel will result in a Penalty Charge Notice (PCN). Payments can be made via Auto Pay or directly through the official TfL website.
Context and Upcoming Challenges
These changes come just ahead of what the AA has dubbed "manic Monday" (5 January 2026), which is predicted to be one of the worst days of the year for vehicle breakdowns as people return to work and regular travel after the Christmas period.
The move to include electric vehicles in the Congestion Charge reflects the growing number of EVs on London's roads and is part of a broader strategy to manage traffic and reduce emissions in the city centre, while also supporting TfL's finances.
