Transport for London (TfL) has announced that from December 25, 2025, drivers of zero-emissions vehicles will no longer benefit from the current £10 annual exemption for the congestion charge. Instead, they will be required to pay the standard £15 daily charge, aligning with other vehicles.
The decision has sparked criticism from environmental groups and the Federation of Small Businesses (FSB), although it has garnered support from the Green Party. TfL stated that the discount was always intended as a temporary measure to combat London’s severe air pollution. By removing the discount, TfL aims to maintain the effectiveness of the congestion charge, which is essential for managing traffic and congestion in central London.
According to TfL data, currently, 112,318 cars and vans benefit from the discount, including 15,782 private hire vehicles. The removal of the discount is expected to impact these drivers significantly.
Oliver Lord from the campaign group Clean Cities described the decision as “puzzling.” He argued, “By offering incentives to businesses for electric vehicles, we not only promote greener transport but also draw a line against the most polluting freight vehicles.
Alex Pierce from the electric car company GoinGreen criticized the move, stating, “Environmentally and economically, this makes no sense.” He added that customers choose electric cars “because they are cheaper and hassle-free when you want to go into central London…will go back to buying diesel or hybrid which is worse for the environment.
The FSB contended that the discount should continue to support business owners who have already invested in electric vehicles and infrastructure. A TfL spokesperson highlighted that “More than 52,000 grants have been approved for Londoners, businesses, and charities to switch to cleaner vehicles, with 70,000 fewer non-compliant vehicles now seen driving on London’s roads.
The Green Party maintained that the discounts were always intended to be temporary. Caroline Russell AM said, “If every Londoner drives an electric car we won’t tackle congestion, air pollution or the climate crisis. The best solution to any concerns about unfairness in changes like this is to move to smart, fair road user charging.
City Hall Conservatives declined to comment on the issue.
This policy shift underscores the ongoing debate about how best to balance environmental incentives with effective traffic management and congestion control in one of the world’s busiest cities.
