Changes to Electric Vehicle Exemptions
Effective 25 December 2025, Transport for London (TfL) will discontinue the Cleaner Vehicle Discount (CVD), which currently grants a 100% discount on the Congestion Charge to battery electric and hydrogen fuel cell vehicles. After this date, unless eligible for another discount or exemption, all vehicle owners will be required to pay the standard Congestion Charge when driving within the charging zone during operational hours. The Congestion Charge zones operate in central London, in contrast to ULEZ zones, which take over the entire city and its boroughs.
The Cleaner Vehicle Discount currently allows electric vehicle owners to pay just a £10 annual registration fee to receive a 100% discount on the London Congestion Charge. However, as confirmed by Transport for London, this exemption is scheduled to end in December 2025. After this date, electric vehicle drivers will be subject to the same standard Congestion Charge as other vehicles—a £15 daily fee applicable whenever they enter the central London zone during operational hours:
Monday to Friday: 7:00 to 18:00
Saturdays, Sundays, and bank holidays: 12:00 to 18:00
The charge does not apply between Christmas Day and New Year's Day bank holiday (inclusive). The daily charge is £15 if paid in advance or on the day of travel. A higher rate of £17.50 applies if paid by midnight on the third day after travel.
Avoiding the congestion charge will unfortunately land you a 180 pound penalty fee, which would reduce to 90 pounds if paid off in 14 days.
Context of the Decision
The decision to end the CVD aligns with TfL's objective to manage traffic congestion in central London effectively. According to TfL, discontinuing the discount will help maintain the effectiveness of the Congestion Charge, which is designed to manage traffic and congestion in the heart of the city.
Impact on EV Adoption and Owners
The removal of the CVD has elicited mixed reactions. Some businesses and organisations have expressed concerns that this change may discourage the adoption of electric vehicles. For instance, over 40 companies, including Ocado and the AA, have urged the Mayor of London to reconsider the plan, arguing that the charge could deter the adoption of electric vans, which comprised only 5.9% of new van sales in 2023.
For regular EV commuters, this policy change represents a significant increase in daily travel costs. Previously, eligible EV drivers could register for a £10 annual discount; with the CVD's removal, they will be subject to the standard daily charge, leading to substantial additional expenses over time.
History of the Congestion Charge
The London Congestion Charge was introduced on February 17, 2003, to address severe traffic congestion in central London. The scheme has undergone various changes over the years, including adjustments to charges, operational hours, and the introduction of discounts and exemptions to promote cleaner vehicle use.
The effects were immediate, as traffic levels dropped by around 15% in the first year, and public transport use increased significantly. Over the years, the scheme has evolved, with price adjustments, technology improvements (such as camera-based automatic number plate recognition), and new exemptions for electric vehicles and certain low-emission cars.
The specific discount for electric vehicles was implemented in 2021 and was planned to continue until December of 2025.
Broader UK Transportation Policy Context
This policy change reflects a broader shift in UK transportation strategy, recognising that all vehicles, regardless of their emission levels, contribute to road congestion. Discussions around implementing road pricing schemes, such as pay-per-mile charges, have emerged as potential solutions to address both congestion and the anticipated decline in fuel duty revenues due to increased EV adoption. While no formal plans have been established, these discussions indicate a growing emphasis on managing traffic volume alongside environmental considerations.
Other UK cities with congestion or clean air zones, including Birmingham, Manchester, and Bristol, are observing London's policy adjustments and may consider similar measures to balance emission reductions with traffic management objectives.
