London Mayor Sadiq Khan faces criticism over a significant increase in the Congestion Charge, with accusations of exploiting drivers and generating an additional £80 million annually from this change.
London's Congestion Charge to Impact Electric Vehicle Owners
London's congestion charge is set for a significant change, with electric vehicle (EV) owners no longer exempt from the fee. Starting January 2, 2026, EV drivers will be required to pay the congestion charge, albeit with a potential 25% discount for those enrolled in the Auto Pay system [1][3][5].
This change will cost electric car drivers an estimated extra £75 million per year, as the long-standing full exemption for EV owners is removed [1]. The daily congestion charge will also rise from £15 to £18 [3].
Transport for London (TfL) projects that these changes will generate up to £455 million over the next five years [1]. The increased revenue comes from both the rise in the daily congestion charge and the inclusion of electric vehicles in the fee-paying cohort.
However, concerns have been raised about the potential impact on key workers and independent garages that service vehicles, including EVs. The Independent Garage Association fears that this policy could inadvertently penalize these essential sectors [3][4]. They have urged for exemptions to be introduced for professional drivers and essential vehicle servicing to avoid unintended negative effects.
| Aspect | Details | |-------------------------------|-----------------------------------------------| | Congestion charge increase | From £15 to £18 daily (effective January 2, 2026) | | EV owners impact | No longer fully exempt; pay full charge with possible 25% Auto Pay discount | | Cost to EV owners | Additional £75 million per year in charges | | Revenue for TfL | Up to £455 million over five years | | Key concerns | Potential penalization of key workers and garages supporting EVs |
These changes mark a significant policy shift by Mayor Sadiq Khan, balancing congestion and revenue goals against earlier incentives for electric vehicle adoption [1][3][5]. Business leaders and tradespeople have expressed concerns about the costs, with some warning that their firms could face closures due to the extra charges [2]. The consultation on the changes was launched by TfL in May this year, and the finalized plans are still being finalized [6].
- The insurance industry may see increased claims from electric vehicle (EV) owners due to the additional cost of the Congestion Charge, which is now applicable to EV drivers starting January 2, 2026.
- The finance sector could experience changes in the demand for car loans and leases as potential buyers weigh the increased cost of EV ownership with the environmental benefits.
- The transportation and general-news sectors will closely monitor political discussions regarding potential exemptions for key workers and professional drivers, as well as for essential vehicle servicing, to assess the impact on the mobility of London's workforce.
