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London’s congestion charge is set for one of its biggest shifts in years, with both the cost of entering the zone and the treatment of electric vehicles set to dramatically shift in 2026. The development represents mayor Sadiq Khan’s latest step to incentivize public transportation over personal vehicles.
From January 2, the daily fee will rise from £15 to £18, the first increase since 2020. Transport for London (TfL) says future rises will track Tube fares or inflation to keep public transport from becoming the more expensive choice.
The most contentious change is aimed at electric vehicles. After years of enjoying a full exemption, EVs will soon pay 75% of the standard charge, rising to 87.5% in 2030.
Drivers will need to enrol in TfL’s auto-pay system to access the discount, a lengthy process that may deter some users. Electric vans and battery-powered delivery vehicles will receive a 50% discount if registered for daily payment, while EVs used by car-sharing clubs remain fully exempt in an effort to encourage shared mobility.
Reactions have been split. The AA’s Edmund King described the move as a step backwards, arguing that incentives are still needed to convert hesitant drivers. On the other side, sustainable transport groups welcome the rise, saying London must continue reducing traffic while investing in public transit, walking, and cycling.
Since 2019, the number of EVs in the capital has increased sixfold to more than 116,000 or one-fifth of all registered vehicles, prompting supporters to argue that early-stage subsidies are no longer as crucial.
The congestion charge, introduced at £5 in 2003, has climbed steadily as London attempts to curb gridlock and emissions. TfL warns that freezing the fee would lead to roughly 2,200 additional vehicles entering the zone each weekday next year.
Residents within the Ulez boundary will still receive a 90% discount, and low-income or disabled residents will continue to be exempt. But the broader direction is clear:
London is shifting from promoting EV adoption at any cost to reducing car dependency altogether and championing public transport in its place. For automakers, the shift underscores an evolving urban landscape where electrification is only one part of a wider mobility strategy.
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