As of early 2026, the landscape for drivers, especially businesses using electric vehicles (EVs) entering central London, is changing significantly. The longstanding 100% discount for EVs under the London Congestion Charge (CCZ) is being removed. Instead, a new tiered discount system will apply, a move that has vast implications for businesses, fleet operators and EV owners alike. In this post, we break down what’s changing, what businesses need to know, and why this matters for EV fleets going forward.
What is changing about the congestion charge for EVs?
The changes confirmed by Transport for London (TfL) and the office of Sadiq Khan will come into effect from 2 January 2026. Here are the headline points.
The daily Congestion Charge will increase from £15 to £18.
The existing 100% discount for EVs (the so-called “Cleaner Vehicle Discount” or CVD) ends on 25 December 2025.
From 2 January 2026, a tiered discount will replace the full exemption:
Electric cars on Auto Pay: 25% discount, meaning about £13.50/day.
Electric vans, HGVs, quadricycles on Auto Pay: 50% discount, i.e. about £9/day.
From 4 March 2030, discounts will be reduced further: electric cars will get a 12.5% discount, and electric vans/HGVs/quadricycles 25%.
Eligibility for the discount requires vehicles to be registered for TfL’s Auto Pay system. In short, from 2026, EVs will no longer be exempt from the Congestion Charge. Instead, they will pay a reduced daily fee.
Why is the congestion charge change happening?
TfL and the Mayor’s office argue several reasons behind these reforms:
The 100% EV exemption has lost much of its original effect: as more EVs dominate the CCZ, the Congestion Charge’s ability to deter traffic and reduce congestion has weakened.
Between growth in EV numbers and increasing traffic, TfL estimates that without change, there could be about 2,200 extra vehicles entering the zone on an average weekday, undermining the scheme’s aims.
Adjustments help ensure the scheme remains effective at managing road space, air quality, and congestion while continuing to encourage greener vehicles.
The fee increase (from £15 to £18) also reflects inflation and broader pressures on public transport funding post-pandemic.
According to TfL, the revision aims to strike a balance: still giving EVs some benefit via reduced charge but ensuring the Congestion Charge maintains its traffic-management purpose.
What does this mean for businesses and EV fleets?
For businesses, especially those operating EV fleets, couriers, delivery services, or any company that needs to drive into central London, the change is significant. Here are some of the key implications:
Increased operating costs for EV fleets
If your business regularly drives into the Congestion Charge Zone, you’ll now pay per-day fees, even for EVs. For example:
A business van previously fully exempt will now pay roughly £9/day (on Auto Pay), a direct cost that adds up over time.
For electric cars used by staff for business trips, the cost becomes £13.50/day instead of nothing.
Multiply that by the number of vehicles and tri, and the impact on operating costs becomes material.
Impact on fleet planning and budgeting
Businesses will need to revise budgets, now factoring in potential daily charges for entering London with EVs. Those planning to expand EV fleets must run new cost forecasts.
Consideration for route planning and delivery schedules
Fleet managers may revisit routes to avoid the zone when possible, or re-evaluate whether certain jobs require entering central London. For delivery or service businesses, this could mean longer trips or additional planning to avoid daily charges.
Fairness and EV adoption concerns
For businesses that invested early in EVs, assuming long-term exemption, these changes might feel like a shift in goalposts. Organisations that switched to EVs for clean credentials may now face higher costs than anticipated.
Administrative compliance: Auto Pay registration needed
To benefit from discounts, all EVs need to be registered on Auto Pay. Businesses must ensure fleet vehicles are correctly registered; otherwise, they risk paying the full charge.
How can businesses adapt to the new congestion charge?
Here are practical steps companies can take to manage the impact:
Review and update fleet cost models to include new congestion charges.
Analyse whether all journeys into the zone are essential, or if some can be consolidated, deferred, or done remotely.
For delivery/logistics businesses: consider alternative routes, drop-off points outside the zone, or timed deliveries to reduce visits.
Ensure all EV fleet vehicles are signed up for Auto Pay to get the discounted rate.
Evaluate the total cost of ownership (TCO) for EVs vs alternatives, including fuel, maintenance, tax, and now congestion charges.
Reassess vehicle replacement strategy: in some cases, lighter vehicles or hybrid options may become more cost-efficient depending on the use case.
What stays the same, and where EVs still benefit
It’s important to note that the change does not mean EVs lose all benefits compared with petrol/diesel vehicles:
The charge is still lower for EVs than for conventional vehicles, a 25% discount for cars, 50% for vans/HGVs (at least initially).
Registrations under “back-to-base” car-club schemes retain special exemptions: certain EV car-club vehicles will still benefit from full or significant discounts when picked up and returned to the same bay.
From 203,0, there are further planned reductions in discount levels, giving businesses advanced visibility to plan long-term.
So while costs will rise, EVs remain somewhat advantaged versus conventional vehicles, especially for businesses able to optimise fleet usage and minimise zone entries.
Key takeaways for business owners and fleet managers
From 2 January 2026, EVs entering central London will no longer be fully exempt from the Congestion Charge except for daily fees, even for zero-emission vehicles.
The standard charge rises to £18/day, with discounts to £13.50 (cars) or £9 (vans/HGVs/quadricycles) but only for vehicles registered on Auto Pay.
Businesses will likely face increased operating costs, so re-evaluate budgets, routes, vehicle usage and fleet strategy accordingly.
Register EVs on Auto Pay now to get discounted rates.
Use the next few months to plan, optimise delivery schedules, routes and overall fleet use.
Ultimately, this update underlines that the Congestion Charge is first and foremost a traffic-management and congestion-control tool, not purely an emissions-penalty scheme. Businesses operating in or near London with EV fleets should act now to adapt, or risk surprise costs from 2026 onwards. Learn more about public EV charge cards.
