Congestion Charge EV exemption removal to generate over £75million per year
TfL is planning to raise the Congestion Charge to £18, and EV drivers will have to pay too
Proposed changes to the London Congestion Charge are set to raise tens of millions of pounds per year, with electric car drivers set to bear the biggest burden.
An Auto Express Freedom of Information request submitted to Transport for London uncovered that the removal of the EV exemption to the Congestion Charge is expected to generate as much as £75 million per year – or even more if the proposed changes to the Cleaner Vehicle Discount are not implemented.
Such changes mean that while EVs will, from 2 January 2026, be subject to the Congestion Charge, they will be able to receive a 25 per cent discount (50 per cent for vans and other LCVs) if registered through the TfL Auto Pay system.
Nevertheless, if such changes to the CVD aren’t implemented as planned, EV drivers would be forced to fork out the full amount, increasing the total amount paid by everyone to TfL to a startling £83 million.
It doesn’t end there, however, as TfL also plans to increase the daily Congestion Charge rate from £15 to £18 from the beginning of 2026; this, covering both electric and ICE cars, is forecast to rake in at least an additional £40 million over five years, rising to as much as £55million.
Combined, and taking into account overlaps with the aforementioned inclusion of EVs, TfL says it expects Congestion Charge revenue to grow from £240 million in the financial year 2024/25, to £320 million in 2026/27, essentially stuffing an extra £80 million into Sadiq Khan’s pockets per year.
Talking to Auto Express, a spokesperson for the AA said the association is “bitterly disappointed that TfL is now picking on EV drivers,” pointing out how the “incentive to get more people into zero emissions vehicles has now been swallowed up in a general cash grab.”
“London has done next to nothing to provide a park-and-ride facility on the outskirts of the city, but is happy to implement a Congestion Charge that makes people think twice about driving in,” the AA explained.
This comes soon after TfL implemented tolls for the Blackwall and Silvertown tunnels — something, figures suggest, has reduced traffic by roughly 5,000 drivers per day.
The Department for Transport has also decided to increase the Dart Charge Dartford Crossing toll by £1 in September; Transport Secretary, Lilian Greenwood, said current traffic levels at the crossing “are well in excess of [its] design capacity, causing delays, congestion and journey disruption to drivers on the M25 and a range of knock-on impacts for local communities”.
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