London motorists are facing a significant change to their travel costs as a key exemption from the Ultra Low Emission Zone (ULEZ) charge is set to expire this week.
Discount Ends as Planned on Christmas Day
Transport for London (TfL) has confirmed that the existing 100 per cent ULEZ Cleaner Vehicle Discount will end on 25 December 2025, a date that was always part of the original plan. The move means many drivers who previously travelled into the zone for free will now have to pay the daily charge.
Under the leadership of Labour's London Mayor, Sir Sadiq Khan, TfL is implementing a new structure of discounts aimed specifically at electric vehicles. The transport body stated this shift is necessary "to continue incentivising the important switch to electric vehicles and ensure that the Congestion Charge remains effective."
New Tiered System and Potential Congestion Impact
From January 2026, a new tiered system of discounts will be introduced. However, these incentives will only be accessible for fully electric vehicles that are registered for TfL's Auto Pay scheme.
TfL has warned that without these adjustments, congestion could worsen significantly. Their modelling suggests there could be over 2,000 additional vehicles driving in the Congestion Charge zone during peak hours on an average weekday. This increase, compared to a 'do nothing' scenario, would lead to more traffic queues, longer delays, and a negative impact on London's economy, local businesses, and bus services.
Political and Public Reaction
The policy change has sparked immediate political debate. Keith Prince AM, the Conservative Party's transport spokesman at City Hall, criticised Mayor Khan's decision, arguing it would "penalise residents."
"The Mayor insists that EVs are the future," Prince said, "but is planning to gut the incentive for most people to make the transition with these proposals, pulling the rug from under drivers."
In defence of the changes, Christina Calderato, TfL's Director of Strategy, highlighted the Congestion Charge's success since 2003 in promoting walking, cycling, public transport, and cleaner vehicles. "With these proposed changes we want to make sure it continues to be effective in managing traffic and congestion in central London while providing ongoing support to those who need to drive in the zone to make the switch to an electric vehicle," she stated.
Calderato also encouraged the public to participate in the ongoing consultation to help shape the final plans. Drivers are urged to check their vehicle's compliance and the new eligibility criteria to avoid unexpected charges.
