Changes introduced at the start of 2026 mean electric cars are no longer 100% exempt from paying the London congestion charge.
With electric cars across the UK now also subject to road tax (vehicle excise duty), there are new pros and cons to weigh up for anyone who already owns an electric car or is considering buying one.
EASY AS HACK
Electric cars are eligible for a 25% cleaner vehicle discount on London’s congestion charge – but only through Transport for London’s Auto Pay system. Register your vehicle here
At a glance
- The daily cost of London’s congestion charge is now £18
- Electric cars are no longer exempt from the congestion charge, but can claim a cleaner vehicle discount rate of £13.50
- Road tax (vehicle excise duty) now covers electric cars. The amount you’ll pay depends on the type of vehicle and when it was registered.
- Electric cars are still exempt from paying London’s Ultra Low Emission Zone charge
Here we explain the new rules for the London congestion charge and road tax. We also look at what London’s Ultra Low Emission Zone (ULEZ) scheme, and other initiatives like it in cities around the country, mean for electric cars.
what is the congestion charge?
First introduced in 2003, the London congestion charge is a daily fee that most motorists must pay to drive in certain parts of the nation’s capital during peak hours.
It aims to reduce traffic congestion in central London, improve journey times, and encourage people to make fewer car journeys by incentivising the use of more sustainable travel options, such as public transport, walking, and cycling.
The charge applies to an area of central London that’s roughly defined as being inside the Inner Ring Road and is indicated by ‘C’ signs on the road. It operates from 7:00am to 6:00pm Monday to Friday, and from 12:00pm to 6:00pm on Saturdays, Sundays, and bank holidays.
Enforced by automatic number plate recognition (ANPR), the daily charge is £18 if paid in advance or on the day but rises to £21 if paid by midnight on the third day after travel.[1] You can pay on Transport for London’s (TfL) website, by phone using the TfL Pay to Drive in London app, or by automatic monthly billing, using Auto Pay.
Do electric cars have to pay the congestion charge?
Yes, electric cars do have to pay the £18-a-day congestion charge after the previous 100% cleaner vehicle discount (CVD) exemption for zero-emission vehicles ended.
However, electric cars are eligible for a 25% CVD [1],which reduces the daily fee to £13.50 – but only if registered for Auto Pay.
Read our beginner’s guide to electric cars.
what is the cleaner vehicle discount?
The TFL’s cleaner vehicle discount scheme aims to promote greener transport options, and it initially offered battery-electric cars a 100% exemption from the congestion charge.
It is now being replaced, in phases, by a new tiered system for electric vehicles that are registered for Auto Pay. You can register up to five cars for free with AutoPay, and TfL will automatically charge your account every day you drive in the zone. If you’re a business with six or more vehicles, you can set up Fleet Auto Pay.
Phase one of the new tiered CVD system is already operating at a:
- 25% off for electric cars and electric private hire vehicles.
- 50% off for electric vans, quadricycles and HGVs.
Phase two will start from 4 March 2030 and operate at discounts of:
- 12.5% off for electric cars and electric private hire vehicles.
- 25% off for electric vans, quadricycles and HGVs.
Check this out – our guide to electric car charging.
how do you apply for the cleaner vehicle discount?
Here’s a step-by-step guide to get the CVD for your electric vehicle:
- Create a London road user charging account via the TfL website or Pay to Drive in London app.
- Once logged in, select ‘Set up Auto Pay’ from your account options.
- Provide details for a direct debit mandate or link a payment card.
- Add the registration number(s) for the vehicle(s) you want covered by Auto Pay.
TfL will automatically charge your account every day you drive in the congestion charge zone, but you can manage your vehicles and payment details under the 'Manage Auto Pay' section. There are no fees to set up Auto Pay or add vehicles.
what happens if you drive in the congestion charge zone?
Transport for London uses automatic number plate recognition (ANPR) cameras to capture the details of every vehicle that drives in and out of the London congestion charge zone.
These cameras read number plates so that a data-matching system can cross-reference them with payment information to determine whether the registered owner has paid the applicable charge.
Motorists should pay a default daily fee of £18 [1] if paid in advance or on the day (unless you qualify for a discount), which rises to £21 if paid by midnight on the third day after travel.
If you make no payment, TfL will send a £180 penalty charge notice (PCN)[2] to the registered keeper of the vehicle in question. You have 28 days from the date of service of your PCN to either:
- Pay the penalty or
- Challenge the PCN by making a representation online or in writing.
If you pay within 14 days of the date of service, you will receive a 50% discount, cutting the payment to £90.
Common reasons for challenging the PCN include:
- You weren’t the registered keeper at the time of the congestion charge contravention
- You’ve already paid the charge
- Your vehicle was exempt
- The vehicle was used or taken without your consent
- The vehicle was being hired by someone else
You can view more details of the PCN before paying it or making a representation.
where does the london congestion charge operate?
The congestion charge zone operates in areas inside London’s Inner Ring Road and includes the City of London and the West End.
how do you know if you have driven inside the congestion charge zone?
You will know you’re driving inside the London congestion charge zone because it is indicated by ‘C’ signs on the road.
To help drivers, a map of the zone is available on the TfL website. You can also enter a street name, postcode, or landmark in the search box to see if it falls within the charging zone.
road tax and electric cars
Electric cars are now subject to road tax[3] – officially called vehicle excise duty. This change, introduced in 2025, applies to both new and existing vehicles. The amount you’ll need to pay depends on the type of vehicle and when it was registered.
Most electric cars will attract the standard £195 annual rate, but those with a list price of more than £40,000 will bring an extra yearly charge.
For more detailed information, see our guide to road tax for electric cars.
ulez and electric cars
In London, research by Imperial College London concluded that toxic air contributes to around 4,000 premature deaths each year,[4]as well as increased risks of asthma and cancer. To improve air quality, the Ultra Low Emission Zone (ULEZ) scheme charges drivers of vehicles that do not meet specific emission standards a daily charge.
Operating 24/7 across all London boroughs, except Christmas Day, the daily ULEZ charge is £12.50 for most non-compliant cars and vans. However, zero-emission electric vehicles are entirely exempt from the ULEZ daily fee.
are other cities implementing congestion charges?
London's congestion charge is unique in the UK, but several other cities are considering clean air schemes similar to the capital’s ULEZ.
One example is Birmingham’s clean air zone,[5] which operates 24 hours a day and charges daily for vehicles that do not meet emission standards. Electric cars are exempt.
Similar initiatives are run in Bristol and Oxford, while Bath and Sheffield have schemes that target commercial vehicles only. In the Scottish cities of Glasgow,[6] Edinburgh[7] and Aberdeen,[8] the clean air zones do not allow drivers to pay a daily fee to enter with a non-compliant vehicle. Instead, if a vehicle does not meet the standards, it must not enter and will be penalised if it does.
If you are considering buying an electric vehicle, Ageas can help. Find out about our electric car insurance.
Sources
[1] tfl.gov.uk - Congestion Charge
[2] tfl.gov.uk - Penalties and Enforcement
[3] Gov.uk - Vehicle tax for electric, zero and and low emissions vehicles
[4] London.gov.uk - The Ultra Low Emission Zone (ULEZ) for London
[5] Birmingham City Council - A clean air zone for Birmingham
[6] Glasgow City Council - Glasgow's LEZ - Key Information
[7] The City of Edinburgh Council - Low emission zone
[8] Aberdeen City Council - Low Emission Zone (LEZ)
