Thousands of motorists in England are confronting a significant new daily expense for the first time following a major rule change that took effect immediately after Christmas.
The End of the Cleaner Vehicle Discount
From Thursday, 25 December 2025, electric vehicles (EVs) are no longer fully exempt from paying the Congestion Charge in central London. This move brings a definitive end to the 100 per cent Cleaner Vehicle Discount, a benefit that had encouraged many drivers to switch to zero-emission cars. The change was formally approved by London's Mayor, Sir Sadiq Khan, in November.
Paul Barker, the editor of Auto Express, warned drivers to take immediate notice. "With the Congestion Charge changes starting, drivers need to be aware now because the costs will add up fast if they do nothing," he stated. "For electric vehicle drivers in particular, going from paying nothing to potentially £90 a week will come as a real shock."
Financial Impact and Industry Reaction
Barker highlighted the cumulative effect of recent policy shifts on EV owners. "EV buyers have already lost their exemption from the luxury car tax, and now this. Removing the Congestion Charge exemption will hit ordinary drivers hard – especially those who moved to an EV specifically to avoid such charges and reduce their environmental impact."
Transport for London (TfL) has defended the decision as necessary for managing the capital's traffic. Christina Calderato, TfL's Director of Strategy, explained in a statement: "If we want to ensure that London remains a thriving city for everyone to enjoy, then it's vital that traffic and congestion are kept under control and managed effectively."
She added: "The changes to the Congestion Charging scheme play a key role in allowing us to do that, while striking a careful balance that enables drivers, businesses and other organisations to continue transitioning to cleaner vehicles and more sustainable forms of transport."
Future Changes to the Discount Scheme
The removal of the full exemption is just the first step in a phased reduction of the benefit for cleaner vehicles. From March 2027, only residents driving electric vehicles will be eligible to apply for the 90 per cent Residents' Discount. This will further narrow the scope of financial relief.
Looking further ahead, from March 2030, the discount for electric cars will be reduced to just 12.5 per cent. The discount for electric vans and other heavy vehicles will also be slashed, falling to 25 per cent from the same date. These planned changes signal a long-term strategy to integrate electric vehicles fully into the standard charging framework.
The shift in policy marks a pivotal moment for urban transport in London, moving incentives away from ownership of electric vehicles alone and towards broader sustainable travel choices.
