Electric vehicles will continue to receive a discount in London’s Congestion Charge zone from January 2026, despite earlier plans to remove the incentive completely at the end of 2025.
Transport for London has confirmed that the current 100% Cleaner Vehicle Discount for EVs will end on 25 December 2025 and be replaced by a reduced discount for vehicles registered for Auto Pay.
From 2 January 2026, the daily Congestion Charge will increase from £15 to £18 when paid on the day of travel or in advance. For drivers who pay within three days after travel, the charge will rise from £17.50 to £21. Existing residents who hold the Congestion Charge residents discount will continue to receive 90% off the standard rate and will pay £1.80 per day.
Under the new structure, fully electric cars that are registered for Auto Pay will receive a 25% discount on the daily charge. This means an EV car will pay £13.50 instead of £18. Electric vans, HGVs and quadricycles on Auto Pay will receive a 50% discount and will pay £9 per day. The discount does not apply if the vehicle is not on Auto Pay, so fleets and company car drivers will need to ensure vehicles are registered correctly to benefit.
TfL says the change is intended to balance two aims, the first is to continue encouraging the switch to electric vehicles, the second is to ensure the Congestion Charge remains effective at managing traffic and congestion in central London.
Its modelling suggests that if the current one hundred percent discount remained in place, there could be more than two thousand extra vehicles entering the zone during charging hours on a typical weekday, which would increase queues and delays for all road users.
Further changes planned to London Congestion Zone from 2030
A second phase will follow from 4 March 2030, when the discount level will reduce again as the number of eligible electric vehicles grows. From this date, electric cars on Auto Pay will receive a 12.5% discount, while electric vans, HGVs and quadricycles on Auto Pay will receive a 25% discount.
There are also changes to the residents discount for new applicants; existing residents who already hold the 90% discount will keep it for all vehicle types, including new or replacement vehicles, provided they renew each year. For residents applying from 1 March 2027, the 90% discount will only apply to electric vehicles, with limited concessions for certain low income and disability benefit recipients who may add non electric vehicles before March 2030.
The revised congestion charge structure means that the direct financial advantage for driving an EV into central London is smaller than before, but still present. For business users and fleets operating electric cars and vans, the message is that the discount has been reduced, not removed, and that correct Auto Pay registration will be essential to secure the lower daily charges from 2026 onward.
View our electric cars that are available to lease if you want to qualify for the discount on the London Congestion Charge.
