Shoppers and drivers are watching as Transport for London trims the electric vehicle (EV) congestion charge exemption, a move that changes discounts from January 2026 and matters for motorists, couriers and businesses across the capital. Here’s a clear, practical guide to the changes, why critics say it’s a backward step, and how to prepare.
Essential Takeaways
- Discounts are shrinking: From 2 January 2026 EV cars will get a 25% auto-pay discount, falling to 12.5% in 2030; electric vans, HGVs and quadricycles get 50% in 2026, dropping to 25% in 2030.
- Cleaner Vehicle Discount ends: The current CVD, which effectively removed the charge for many EVs, runs until 25 December 2025 and will not continue in its present form.
- Uptake rose fast: Since CVD began in 2019, EV registrations in central London jumped from about 20,000 to over 116,000 by early 2025.
- Balance and backlash: TfL argues the tiered discounts still incentivise switching to EVs while keeping congestion charging effective; the AA warns this could slow uptake and harm air quality.
- Practical step: If you drive in the Congestion Charging Zone, register for Auto Pay to access the new discounts and check pricing before planning regular trips.
Why TfL says the new tiered discounts are a practical compromise
TfL describes the changes as a careful recalibration: keeping incentives for cleaner vehicles while ensuring the Congestion Charge does its job in cutting traffic. The authority insists that tiered discounts will still make EVs cheaper to run than petrol cars, at least initially, and that the system encourages gradual adoption rather than rewarding early adopters indefinitely.
You’ll notice this in the numbers. TfL points out nearly sixfold growth in EVs registered in the zone since the Cleaner Vehicle Discount began in 2019, and predicts EVs will approach 20% of vehicles in the charging zone by the end of the year. That visual shift , more plug-in vans and cars on inner London streets , is exactly what TfL says it wants to nurture, while reintroducing some charge to manage demand.
TfL frames the move as forward-looking but pragmatic. For commuters and businesses, though, it feels like a change of pace: helpful for some, stingy for others who expected a longer runway of full exemption.
Why critics say rolling back the exemption could backfire on air quality
And here’s the catch: organisations like the AA are alarmed. Edmund King, the AA president, called the rollback “a backwards step” that risks slowing the switch to EVs and ultimately weakening air quality improvements. The argument is straightforward , many drivers and small businesses still need incentives to make the switch, and removing them too quickly could keep older, dirtier vehicles on the road.
There’s also a human side. Tradespeople and courier drivers often weigh short-term costs closely, and a sudden extra daily charge can tip decisions the wrong way. That’s why voices from the AA and some business groups say phasing out generous discounts before infrastructure and affordability are fully in place might be counterproductive.
TfL counters that the phased reduction still leaves meaningful discounts and that public money shouldn’t indefinitely fund complete exemptions. This tension between climate ambition and cost fairness is the story of the new scheme.
How the new discounts work and what to expect in 2026 and beyond
From 2 January 2026 the headline changes land: electric vans, HGVs and quadricycles on Auto Pay get a 50% discount, while electric cars on Auto Pay receive a 25% discount. That’s followed by a second phase on 4 March 2030, when those discounts fall to 25% and 12.5% respectively.
In practice that means you’ll want to be registered for Auto Pay to access the lower rates automatically. If you drive into the Congestion Charging Zone occasionally, check the daily charge math , the reduced discount may still be worth it, but the savings are smaller than under the Cleaner Vehicle Discount.
For businesses that run fleets, the phased schedule gives some time to plan. Fleets that hoped the charge would remain negligible should now factor increasing costs into route planning, pricing, or electrification timetables.
What drivers and businesses should do right now to avoid surprises
If you drive in central London, the simplest step is to register for Auto Pay , it’s how you’ll secure the new discounts. Check your vehicle’s eligibility now, and look at how often you enter the zone to estimate annual costs under the new rates.
For small businesses and tradespeople, start modelling scenarios: keep older vehicles running, switch some to electric now, or stagger replacements. Remember to factor in running and charging costs, potential savings from lower fuel and maintenance, and grant schemes or salary-sacrifice options that might make EVs cheaper overall.
Finally, keep an eye on local consultations and guidance pages from TfL. The changes were announced after consultations and there may be clarifications, appeals or targeted support for particular user groups.
Where this fits in the wider trend , and how it compares to other cities
London’s move is not unique. Cities across Europe are rethinking congestion pricing and EV incentives as electrification grows. Some maintain full exemptions for zero-emission vehicles longer, while others reduce benefits to temper traffic or raise revenue. The big difference in London is scale: such a large and visible transition in the Congestion Charging Zone makes any tweak feel consequential.
For drivers, that means watching both the price and the practicalities. In cities where exemptions lasted longer, EV adoption was faster but congestion and parking demand rose sooner. In London, the compromise is designed to keep encouraging cleaner vehicles without losing the congestion charge’s deterrent power.
If you’re comparing options and thinking about when to electrify, look beyond the headline discount. Consider home and workplace charging availability, whole-life costs, and how often you actually drive into the zone.
Closing line
Ready to plan for the new charges? Register for Auto Pay, check your vehicle’s status, and see current prices so you’re not caught out when the new discounts kick in.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, published on 17 November 2025. The earliest known publication date of similar content is 27 May 2025, when TfL announced the proposed changes to the Congestion Charge. ([autoexpress.co.uk](https://www.autoexpress.co.uk/news/366936/london-congestion-charge-rise-20-ev-exemption-chopped?utm_source=openai)) The AA’s response is timely and directly addresses these recent developments. No significant discrepancies in figures, dates, or quotes were found. The content appears original, with no evidence of being republished across low-quality sites or clickbait networks. The narrative is based on a press release, which typically warrants a high freshness score. The inclusion of updated data, such as the increase in EV registrations from 20,000 in 2019 to over 116,000 in early 2025, justifies a higher freshness score but should still be flagged.
Quotes check
Score:
9
Notes:
The direct quote from AA president Edmund King, calling the rollback ‘a backward step’, appears to be original, with no identical matches found in earlier material. This suggests potentially original or exclusive content. No variations in wording were noted, indicating consistency in the reporting of this statement.
Source reliability
Score:
7
Notes:
The narrative originates from Highways Magazine, a publication focused on transport and infrastructure. While it is a specialised outlet, it is not as widely recognised as major news organisations like the BBC or Reuters. The AA’s response is verifiable, with Edmund King’s statement being consistent with other reputable sources. However, the lack of coverage from more prominent outlets may raise questions about the broader dissemination of this information.
Plausability check
Score:
8
Notes:
The claims made in the narrative align with previously reported information about TfL’s planned changes to the Congestion Charge, including the increase in the daily fee and the introduction of tiered discounts for electric vehicles. The AA’s concerns about the potential impact on air quality and EV adoption are consistent with the broader discourse on this topic. The language and tone are appropriate for the subject matter, and there are no inconsistencies or off-topic details. The narrative does not exhibit any signs of being synthetic or artificially generated.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is recent and original, with direct quotes from a verifiable source. The information aligns with previously reported facts, and the concerns raised are plausible within the context of the planned changes to the Congestion Charge. The source, while specialised, is credible, and the content does not exhibit signs of disinformation.
