Millions of drivers, including those who switched to eco-friendly vehicles to dodge the fee, are set for a shock as London's Congestion Charge is set to skyrocket. From Christmas Day 2025, electric vehicles will no longer be exempt from the daily charge, with the cost for all cars jumping from £15 to £18 just seven days later.
Data from Transport for London (TfL), obtained by Auto Express through Freedom of Information requests, reveals this double blow could generate an additional £80 million to £91 million annually – a staggering total of up to £455 million over five years.
This marks the most significant hit yet to the financial benefits of operating an EV in the capital, following the abolition of free parking in certain boroughs and the removal of the luxury car tax exemption. The capital's move is expected to be mirrored by other cities nationwide.
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This clampdown comes despite repeated assurances from London Mayor Sadiq Khan that he aims to incentivise drivers to transition to cleaner vehicles.
Green motorists 'penalised'Tom Jervis, consumer editor at Auto Express, expressed his concerns: "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."
EV buyers have already lost their exemption from the luxury car tax, and now this. 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.
"If we're serious about encouraging the uptake of electric vehicles, we need consistent, long-term incentives – not policies that penalise those who've already done the right thing. Electric vehicle owners should be supported, not squeezed."
How the cash stacks upAccording to TfL's own figures, the removal of the EV exemption could generate at least £75 million a year – rising to almost £83 million if a proposed 25% EV discount is scrapped. In addition, the £3-a-day increase in the Congestion Charge could add up to £55 million over five years.
Combined, this means between £415 million and £455 million extra in TfL's coffers by 2031. TfL predicts its total Congestion Charge income will jump from £240 million in 2024/25 to £320 million in 2026/27.
Small mercy – but for how long?From January 2026, electric car drivers will be able to get a 25% discount if they register for Auto Pay – or 50% for vans – but even that is only guaranteed for five years before being halved.
Mr Jervis urged EV drivers to sign up to Auto Pay immediately to make the most of the offer, saying: "For someone driving into London five days a week, this is a difference of £1,035 a year when the charge rises to £18, so is well worth doing."
The move is expected to reignite debate over whether motorists are being treated as cash cows under the guise of green policy – and whether London's war on traffic is now turning on those who thought they were on the right side of the battle.
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