London Congestion Charge changes to raise up to £455m, with EV drivers hit hardest

Proposed changes to the London Congestion Charge are set to generate between £415m and £455m in additional revenue over the next five years, with electric vehicle (EV) drivers expected to be most affected, according to Auto Express analysis of Transport for London (TfL) data.

From 25th December 2025, EVs will no longer be exempt from the charge, and from 2nd January 2026 the daily rate for both EV and internal combustion engine vehicles will rise from £15 to £18.

While TfL has proposed a 25% discount for EVs registered through its Auto Pay system – and a 50% discount for vans and light commercial vehicles – this would only remain in place for five years before being reduced.

A Freedom of Information request submitted to TfL by Auto Express found that the rate increase alone could raise up to £55m over five years, while removing the EV exemption could generate at least £75m annually, rising to almost £83m if the discount is not implemented.

This would mean an extra £80m to £91m per year for TfL once the changes take effect. TfL has forecast that Congestion Charge revenue will rise from £240m in 2024/25 to £320m in 2026/27.

Tom Jervis, consumer editor at Auto Express, said: “While we recognise the importance of funding clean air initiatives and reducing congestion in London, it’s deeply concerning that electric vehicle drivers – many of whom made the switch in good faith – will now be penalised.

“Removing the Congestion Charge exemption will hit ordinary drivers hard – especially those who moved to an EV specifically to avoid such charges and reduce their environmental impact.”

Jervis urged EV drivers to register for Auto Pay to access the discount if it is introduced, warning that the cost difference could amount to over £1,000 a year for those driving into London daily.