The rules have changed. Here is the new reality for driving electric in London.
If you’re an EV driver wondering whether you still buzz through London without paying the Congestion Charge, you’re not alone. Between different fees, discounts and dates to remember, it can feel like a lot to keep straight.
So let’s start with the bottom line: as of January 2026, electric vehicles do pay the London Congestion Charge. But there’s still a meaningful discount for many EV drivers, and the details matter. That’s what we’re breaking down today in plain language.
We’ll explain the latest rules, how the Cleaner Vehicle Discount works now, how it’s evolving, and why this doesn’t cancel out the broader benefits of driving electric. Along the way we’ll share recent insights and reactions from the automotive and fleet world, so you’ve got a full picture of what’s happening, and why.
The current situation: congestion charges and EV discounts.
Back when electrics were rare on London’s roads, Transport for London (TfL) introduced the Cleaner Vehicle Discount (CVD) as a 100% exemption from the Congestion Charge for eligible vehicles. That meant no daily fee for qualifying EVs, as long as you registered correctly.
However, that full exemption ended on 25 December 2025, and the Congestion Charge changed on 2 January 2026. Under the revised system:
The daily Congestion Charge price rose to £18.
EVs are now eligible for a discount (not a full exemption).
For most pure battery electric cars that are registered with Auto Pay (TfL’s automatic payment system), the current discount is 25%, meaning you pay around £13.50 per day. Electric vans, heavy goods vehicles and quadricycles receive a larger discount (about 50% on the same basis).
Looking further ahead, a planned revision in March 2030 will see those discounts reduce further (to 12.5% for cars and 25% for larger vehicles). That’s a significant shift from the more generous arrangement EV drivers had just a few months ago, and it’s why so many people are still talking about it.
Why the rules have changed.
The core purpose of the London Congestion Charge has always been to reduce traffic congestion, not just emissions. Even though EVs don’t produce tailpipe pollutants, they still take up road space, and TfL says too many exemptions weaken the charge’s ability to keep traffic moving.
According to TfL modelling, if the charge didn’t evolve as EV adoption grew, there would be significantly more vehicles driving in the zone during charging hours, undoing progress on congestion.
Recent figures also suggest that the day-to-day revenue raised from the updated Congestion Charge, which increased to £18 per day, will be higher than under the previous scheme, reflecting both the price rise and broader compliance. One analysis estimates an extra £40 million in earnings for TfL in 2026 compared to the previous year.
What industry voices are saying.
Since the changes took effect, there’s been notable discussion in the automotive and fleet world about the implications:
Business Motoring reported that changes to the Congestion Charge could raise up to £455 million and impact EV drivers significantly, particularly those who live, work or operate regularly in central London.
The AA urged TfL to reconsider the removal of the full EV exemption, calling the rollback “a backwards step”, particularly for drivers who switched to EVs partly in response to earlier incentives.
Larger news outlets like The Independent and others highlighted that both the Congestion Charge and the associated discounts have been reworked, with EV drivers now paying for the first time after years of exemption.
These discussions reflect real-world uncertainty and debate, which is healthy — especially when so many households and businesses based decisions on older policy frameworks.
Congestion Charge vs ULEZ vs LEZ: a quick refresher.
As you think about charges across London, it helps to break down the key schemes:
Congestion Charge.
Applies to most vehicles entering central London during peak hours.
EVs now pay the daily charge, albeit at a discounted rate if registered.
Ultra Low Emission Zone (ULEZ).
Focused on air quality rather than traffic.
Pure electric vehicles remain exempt from the ULEZ charge because they produce zero tailpipe emissions. (This exemption continues independently of the Congestion Charge changes).
Low Emission Zone (LEZ).
Applies mostly to larger, heavier vehicles rather than private cars.
Fully electric vans and heavyweight vehicles are also exempt from LEZ fees due to their emission profiles.
Each of these zones operates independently, so it’s possible for a vehicle to be exempt or discounted in one scheme but not another. That’s why it always helps to check official TfL tools using your vehicle registration. TfL’s compliance tools will tell you what charges apply to a specific vehicle on a given day.
What it means for your wallet and your wheels.
Let’s be honest: paying the Congestion Charge, even with a discount, changes the running-cost picture for many EV drivers who were used to full exemption. But there are still broader benefits to owning and driving an EV, particularly in urban zones:
ULEZ and LEZ exemptions continue for eligible electrified vehicles.
Many EV owners still save on fuel costs vs petrol/diesel equivalents, especially when charging EV at home.
Lower maintenance intensity often means more predictable servicing costs over the life of the vehicle.
What’s shifted is not the principle that electrified driving can be economical and practical, but how some of the road-use incentives are structured as EV adoption becomes mainstream.
Smart charging and E.ON Next’s approach.
At E.ON Next, we think about EVs not as isolated transport choices but as part of a broader energy ecosystem rooted in everyday life. Charging at home, particularly overnight, often offers the best combination of cost, convenience and control.
When you pair smart, reliable home charging with tariffs designed for EV owners, you can manage energy use in a way that feels intentional, predictable and tailored to your lifestyle. Even as road-use charges evolve, controlling what you can influence, like when and where you charge, can make a tangible difference month to month.
For businesses and fleets, workplace charging and integrated support help fleets stay efficient while navigating policy changes like the Congestion Charge evolution.
None of this erases the Congestion Charge, but it can make the day-to-day experience of driving electric clearer and more manageable.
Checking compliance and staying ahead.
Given how quickly policies around driving charges in London have changed, it’s smart to use official tools if you need certainty. TfL maintains online services where you can:
Check ULEZ compliance.
Check how the Congestion Charge and discounts apply to your vehicle.
Manage your Auto Pay registration or apply discounts.
These tools use the exact vehicle registration number and give up-to-date guidance based on the latest rules. Always double-check ahead of a central London trip, especially if you haven’t driven there recently.
So, do EVs pay congestion charges?
Here’s what applies as of 27 January 2026:
Yes. Electric cars now pay the London Congestion Charge, but eligible vehicles receive discounts if registered with Auto Pay.
The previous 100% exemption ended in December 2025.
ULEZ and LEZ exemptions remain in place for fully electric vehicles.
Industry groups continue debating the timing and impact of these changes, reflecting real-world concerns about cost and policy continuity.
The big picture? Driving electric still has benefits, especially where emissions regulations apply, but central London congestion policy has entered a new phase where all vehicles contribute to managing traffic.
If you’re planning ahead as a driver, a fleet operator or a business owner, staying informed and using official compliance tools will help you navigate these changes with confidence.
And if you’d like support thinking through charging solutions, cost implications or home energy options linked to EV ownership, we’re here to help.