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London Congestion Charge Increases to £18: Electric Vehicles Lose Full Exemption

London Congestion Charge Increases to £18: Electric Vehicles Lose Full Exemption

A major update to the London Congestion Charge came into effect on Friday, 2 January 2026, marking significant changes for all drivers entering the capital’s centre. The daily charge has risen for the first time since 2020, and, in a pivotal shift, electric vehicle (EV) drivers are now required to pay the London Congestion Charge for the first time.

This article breaks down the new costs, explains the revised discount structure, and outlines what these London Congestion Charge changes mean for your weekly travel budget.

Key Changes at a Glance: What’s New in 2026?

 
 
ChangePrevious Rule (Pre-2 Jan 2026)New Rule (From 2 Jan 2026)
Standard Daily Charge£15 per day£18 per day
EV Exemption100% discount (free)Discount reduced to 25% for cars50% for vans/lorries
Weekly Cost (5 days)£75£90
Weekly Cost (7 days)£105£126

In-Depth: The New London Congestion Charge Fees

The standard London Congestion Charge has risen by £3, from £15 to £18 per day. This charge applies to petrol and diesel vehicles entering the zone between:

  • Weekdays: 7am – 6pm

  • Weekends & Bank Holidays: 12pm – 6pm

This increase means regular commuters face substantially higher costs:

  • 5-day commuter: £90 per week (approx. £360 per month).

  • 7-day user: £126 per week (over £500 per month).

End of an Era: Electric Vehicles Now Pay the Congestion Charge

In one of the most notable changes, pure battery-electric vehicles have lost their 100% exemption from the charge. Announced by Mayor Sadiq Khan in November 2025, this change is designed to manage growing traffic volumes and support sustainable transport funding.

New EV discount structure from 2 January 2026:

  • Electric Cars: Receive a 25% discount, paying £13.50 per day.

  • Electric Vans & Lorries: Receive a 50% discount, paying £9 per day.

Future Reductions: This discount will be reduced further from 4 March 2030, to 12.5% for cars and 25% for larger electric vehicles.

Why Have the London Congestion Charge Rules Changed?

Transport for London (TfL) states these changes are essential to keep central London accessible. Christina Calderato, TfL’s Director of Strategy, explained:

“If we want to ensure that London remains a thriving city for everyone to enjoy, then it's vital that traffic and congestion are kept under control and managed effectively. The changes to the Congestion Charging scheme play a key role in allowing us to do that, while supporting the switch to cleaner vehicles and more sustainable transport.”

TfL estimates that without these 2026 changes, there could be over 2,000 additional vehicles in the zone on an average weekday, leading to increased congestion and delays.

Resident Discounts and Important Deadlines

  • Existing Residents: Those living within the Congestion Charge zone remain eligible for a discount of up to 90%.

  • New Residents Alert: Individuals who move into the zone after 1 March 2027 will not receive any resident discount unless they use a qualifying electric vehicle.

Avoid a Penalty Charge Notice (PCN)

Drivers must pay the London Congestion Charge by midnight of the third day following travel. Failure to do so results in a Penalty Charge Notice (PCN) of £180, reduced to £90 if paid within 14 days.

Summary: Navigating the New London Congestion Charge

The London Congestion Charge increase to £18 and the end of the free ride for EVs represent a new chapter for driving in central London. The changes aim to balance congestion management with encouraging cleaner transport. All drivers, including EV owners, must now factor the updated £18 daily London Congestion Charge into their travel plans to avoid fines.

Notes to the editor

Media Contact:
Sonia Mattis or Kevin Stewart
news@carsvansandbikes.com

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