London to Introduce Traffic Charge for Electric Vehicles

New regulation from Sadiq Khan: Electric car owners will now pay £13.50 per day

London Mayor Sadiq Khan is overhauling the city's Congestion Charge system, introducing a new pricing model that will also include electric vehicles. According to the new plan, electric vehicle owners will now have to pay £13.50 per day to drive in the capital.

This decision was announced shortly after news that the UK government plans to tax electric vehicles per mile starting from 2028.

Charge rising to £18 pounds

According to the new regulation, the Congestion Charge will increase to £18 from January 2, 2026. Electric cars will be eligible for a 25% discount, while electric vans, heavy goods vehicles (HGVs), and quadricycles will be eligible for a 50% discount. However, only drivers registered with TfL's (Transport for London) Auto Pay system will be able to benefit from this discount.

From March 2030, the discount rates will be reduced: to 12.5% for electric cars, and to 25% for electric vans and heavy goods vehicles.

New conditions for the residents' discount

Londoners living within the charging zone who qualified for the residents' discount before March 1, 2027, will continue to receive a 90% discount, regardless of their vehicle's fuel type. However, those who apply after this date will only be eligible for the same discount if they are electric vehicle owners.

Low-income and disabled Londoners will be able to apply for the discount until 2030, regardless of their vehicle type.

Khan: "Reducing traffic is essential for the city's future"

In a statement, London Mayor Sadiq Khan emphasized that modernizing the city's transport system is inevitable:

"Maintaining London's mobility and reducing traffic is of great importance for both the city and the economy. The Congestion Charge has been a successful system for years, but it needs to stay current. If it continued in its current form, an additional 2,200 vehicles would enter traffic on every weekday next year.

We must support Londoners and businesses in transitioning to sustainable transport methods. I am pleased that incentives for those turning to clean vehicles will continue. We are working towards a greener and more livable London."

Business world reacts: "A step backwards"

TfL stated that the new regulations were prepared in line with "feedback from Londoners." However, the business world reacted to the decision.

The Electric London Coalition, which represents companies like AA, Openreach, and Royal Mail, stated that professional drivers entering London five days a week could face up to £3,000 in additional annual costs.

AA President Edmund King OBE argued that the decision could harm air quality, stating:

"This decision is, unfortunately, a step backwards that will negatively affect London's air quality. Many drivers are not yet ready to switch to electric vehicles. The Mayor should maintain policies that encourage electric vehicle use."

Steve Garelick, representative for the GMB Union's London Region, described the decision as "unfair to workers":

"The removal of the Clean Vehicle Discount is an injustice to London's workers who have done the right thing by switching to an electric vehicle. Private hire drivers are already paying high fees to TfL. Demanding this new charge from them on top of that is not fair."

London traffic cost £3.85 billion in 2024

According to TfL data, if no changes are made, an average of 2,000 additional vehicles could take to London's streets on a typical weekday.

The authority states that traffic congestion cost the capital an economic loss of £3.85 billion in 2024.

By the end of the year, 20% of vehicles in the charging zone are expected to be electric vehicles.