News

Electric vehicles to lose Congestion Charge exemption as per-mile charge looms large

  • Electric vehicles set to incur London’s congestion charge from January
  • EVs had previously been exempt from the scheme under the Cleaner Vehicle Discount
  • Owners will get a discounted rate compared to drivers of ICE vehicles

Time 12:37 pm, November 13, 2025

EV owners are to be hit with further costs after it was announced that they will no longer be exempt from London’s Congestion Charge.

Electric vehicles are currently exempt from the levy under under the Cleaner Vehicle Discount but mayor Sadiq Khan has confirmed that is about to change.

From January 2, all EVs will become subject to the charge, albeit at a discounted rate. Drivers of electric vans and lorries will be entitled to 50% off the cost, while a 25% will be applied for electric cars.

At the same time, the regular Congestion Charge is to rise for the first time since 2020, taking it from £15 to £18.

After the change, electric car drivers will be charged £13.50 a day to drive into the zone, while electric van owners will have to pay £9.

From March 2030, the discount will be further reduced to 25% for electric vans and lorries and 12.5% on electric cars.

The move has been made as Khan looks to reduce the number of vehicles entering the capital’s centre.

Reductions of up to 90% will be awarded to residents who live within the zone but those who move into the area after March 1, 2027, won’t get a discount unless they’re using an electric vehicle.

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.’

‘A backward step’

The news comes just days after it was revealed that the government is planning to include a per-mile charge on EVs in this month’s budget.

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Electric vehicles also lost their road tax exemption earlier this year and AA president Edmund King OBE has criticised the latest measure in London.

Reacting to the congestion charge news, he 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.’

Unions have also hit out at the decision, labelling it ‘deeply unfair’ and an ‘affront to working Londoners’.

Steve Garelick, representing the GMB Union London Region, 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. P

‘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.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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