Owners of electric vehicles (EVs) in London will face a significant new financial burden from the start of the new year, as they become liable for the capital's congestion charge for the first time.
The change, which takes effect on January 2, 2024, signals the end of a major incentive that helped drive the adoption of cleaner vehicles. It forms part of a broader shift where EV drivers are increasingly required to contribute to road taxes and charges.
New Year, New Charges for Electric Cars
From the second day of January, drivers of battery-electric cars entering the Congestion Charge Zone will need to pay. While they will benefit from a discounted rate, it nonetheless represents an added daily cost for those commuting or travelling within central London.
The standard daily congestion charge is rising from £15 to £18 for most vehicles. However, eligible EV owners registered for the scheme's Auto Pay system will pay a reduced rate of £13.50 per day.
This 25% discount is the only concession remaining for electric cars, which until now have been fully exempt from the charge. The move aligns the treatment of EVs more closely with that of traditional petrol and diesel vehicles.
End of an Era for EV Incentives
This policy change is not an isolated incident. It reflects a wider trend where the financial perks enjoyed by early adopters of electric motoring are being gradually withdrawn.
Vehicle Excise duty (road tax) is now payable on new electric cars, and the government has announced plans to introduce a per-mile based tax system for all vehicles in the coming years, which will also include EVs.
Motoring expert Rhydian Jones from Confused.com commented on the shift, noting: "Electric vehicles have long benefited from reduced running costs and incentives like not having to pay these charges, so this change may come as a surprise to many EV drivers."
He added, "While EVs will now be treated more like petrol and diesel vehicles when it comes to congestion charging, there are still meaningful savings to be made when making the green transition, including lower charging costs and reduced maintenance."
Mayor's Office Cites Need for Sustainable Funding
London Mayor Sadiq Khan has defended the decision, stating the shake-up was necessary to ensure the congestion charge "remains fit for purpose". The revenue generated is crucial for funding transport infrastructure and initiatives across the city, including investments in public transport and active travel schemes.
The change comes as the number of electric vehicles on UK roads continues to grow significantly each year, increasing the potential impact of their exemption on both congestion and city revenues.
For affected drivers, the key immediate action is to ensure they are correctly registered with the Congestion Charge Auto Pay system to guarantee they receive the discounted rate and avoid potential penalty charges from January 2 onwards.
