London Mayor Sir Sadiq Khan has confirmed a significant overhaul of the city's Congestion Charge, with higher costs for all drivers and a major reduction in the discount for electric vehicles. The changes are set to take effect from January 2 next year.
Higher Charges and Reduced Discounts
The daily fee for entering the Congestion Charge Zone will rise from £15 to £18. Furthermore, the Mayor is proceeding with plans to drastically cut the financial incentive for electric vehicle (EV) owners. Currently, EVs enjoy a 100% exemption from the charge.
From the January implementation date, this will be reduced to a 50% discount for electric vans and lorries and a mere 25% discount for electric cars. The Mayor's office has also confirmed that the charge will increase annually in line with rises in Tube fares.
Mayor's Justification for the Change
Sir Sadiq Khan defended the decision, stating that maintaining the current system would lead to an estimated 2,200 more vehicles in the charging zone on an average weekday next year. He emphasised the need to keep the charge effective in reducing traffic.
"Keeping London moving by reducing congestion is vital for our city and for our economy," the Mayor said. "While the Congestion Charge has been a huge success since its introduction, we must ensure it stays fit for purpose... We must support Londoners and businesses to use more sustainable travel."
Criticism from Car Clubs and Motorists
The move has attracted criticism, particularly from the car club industry. Richard Dilks, chief executive of CoMoUK, warned that the plans "load more cost onto the capital's car club fleet". He expressed concern that it risks denying access to shared cars, which can reduce both personal costs and overall emissions.
While car club EVs resident within the zone itself will not be charged, Mr Dilks noted this only covers "a handful of vehicles". The broader changes, he argues, work against shared mobility solutions that improve air quality and congestion.
Some individual motorists have reacted with anger. One driver criticised the Mayor's approach, accusing him of arrogance and failing to deliver on past transport pledges.
The policy shift marks a significant moment in London's efforts to manage traffic and air pollution, moving from blanket incentives for EV ownership towards a system where all drivers contribute more directly to the cost of congestion.