The increasing number of electric vehicles (EVs) on UK roads, particularly in urban areas like London, has raised questions about their responsibilities regarding road charges.
One of the most frequently asked concerns is whether electric vehicles are subject to the Congestion Charge in the capital.
While EVs play a pivotal role in the UK’s move towards a net-zero future, Transport for London (TfL) still considers them within the scope of its Congestion Charging scheme, albeit with significant discounts.
This article explores the current policy on electric vehicle discounts under the Congestion Charge scheme, the application process, and the upcoming changes that EV owners in the UK need to be aware of.
Are Electric Vehicles Exempt From London’s Congestion Charge?
Electric vehicles are not completely exempt from the Congestion Charge in London. Instead, they are currently eligible for a full 100% discount through the Cleaner Vehicle Discount (CVD) offered by Transport for London (TfL).
This means owners must take action to claim the benefit and ensure their vehicle qualifies under TfL’s policy.
The Congestion Charge, implemented to reduce traffic and improve air quality, applies to most vehicles driving within central London’s charging zone between 07:00 and 18:00, Monday to Friday.
Rather than granting full exemption, TfL uses a discount-based model to manage traffic volume even as vehicle emissions decrease.
Eligibility for this discount is subject to meeting specific emissions standards and vehicle type requirements. It is also time-limited, with changes planned for late 2025.
What Qualifies A Vehicle For The Cleaner Vehicle Discount?
TfL has set strict conditions for what qualifies as a cleaner vehicle under its scheme. The primary qualification is that the vehicle must produce zero tailpipe CO2 emissions.
A qualifying vehicle must fall under one of the following definitions as set out in the Congestion Charging Scheme Order:
- The vehicle must have a nil Vehicle Excise Duty (VED) licence based on being a zero-emission vehicle
- It must be fully powered by a battery electric system or hydrogen fuel cell
- The vehicle must be able to be recharged from an external electricity source
- The vehicle must emit 0 grams of CO2 per kilometre
Vehicles that meet these criteria are considered fully zero-emission and eligible for the discount until 25 December 2025.
Importantly, plug-in hybrid electric vehicles (PHEVs) do not meet the standard due to their internal combustion engines, even if they operate partially on electric power.
The criteria are grounded in emissions data and legal documentation required during registration. Owners must ensure their documentation aligns with these criteria to avoid paying the standard Congestion Charge.
How Can Vehicle Owners Apply For The Congestion Charge Discount?
Applying for the Cleaner Vehicle Discount is a manual process, and the onus is on the vehicle owner to register through TfL.
Without registration, even fully electric vehicles will be charged when entering the congestion zone.
The process requires the following steps:
- Create a London Road User Charging (LRUC) account on the TfL website
- Complete the Cleaner Vehicle Discount registration form
- Upload supporting documents such as the V5C vehicle registration certificate and proof of emissions compliance
- Pay a £10 annual registration fee
TfL may also request additional evidence in certain cases, particularly for imported or specialist vehicles.
Once registered, the discount remains active as long as the vehicle continues to meet the criteria and the registration is renewed annually.
How Many Electric Vehicles Benefit From The Congestion Charge Discount?
According to data released by TfL, as of 24 June 2024, a total of 112,318 vehicles were registered for the Cleaner Vehicle Discount.
This figure includes both battery electric and hydrogen fuel cell vehicles, although TfL does not separate these in their reporting.
The growth in registrations has been rapid. In early 2019, only around 20,000 vehicles were registered for the discount.
This fivefold increase reflects the growing uptake of electric vehicles in London and increased public awareness of the available benefits.
The table below highlights the growth in registrations over recent years:
| Year | Registered Vehicles for CVD |
| 2019 | 20,000+ |
| 2021 | 54,000+ |
| 2023 | 95,000+ |
| 2024 | 112,318 |
TfL has indicated that the rising number of discount-eligible vehicles has implications for the effectiveness of the Congestion Charge.
This growing volume is one of the reasons behind the decision to end the discount in late 2025.
What Changes Are Planned For The Electric Vehicle Discount Policy?
TfL has confirmed that the Cleaner Vehicle Discount will be withdrawn on 25 December 2025.
From this date, all vehicles, including electric and hydrogen fuel cell models, will be subject to the Congestion Charge unless another exemption category is introduced.
The policy change was first announced in December 2018 to allow time for transition and awareness.
The aim of the change is to ensure that the Congestion Charge continues to serve its primary purpose: reducing traffic congestion in central London.
The phase-out aligns with TfL’s shift from focusing solely on emissions to addressing traffic volume more directly.
Even though electric vehicles are cleaner, they still take up road space and contribute to urban congestion.
The removal of the discount will mark a significant policy shift. It suggests that future road pricing strategies in London may be based more on congestion and road usage than emissions alone.
How Is The Congestion Charge Different From The Ultra Low Emission Zone (ULEZ)?
The Congestion Charge and Ultra Low Emission Zone (ULEZ) often cause confusion, but they serve different purposes and apply to vehicles in different ways.
The Congestion Charge is primarily aimed at reducing traffic congestion, while the ULEZ targets vehicle emissions and air quality.
The following table compares the two systems:
| Feature | Congestion Charge | ULEZ |
| Purpose | Traffic management | Air pollution control |
| Coverage | Central London | Entire Greater London (as of 2023) |
| Time | Mon-Fri, 07:00–18:00 | 24/7, all year round |
| Charge Basis | All vehicles unless exempt or discounted | Non-compliant petrol and diesel vehicles |
| EV Requirement | Requires registration for discount | Fully exempt, no registration needed |
Electric vehicles are exempt from ULEZ charges because they do not produce tailpipe emissions. No changes to this exemption have been announced at the time of writing.
What Other Benefits Do Electric Vehicles Receive In The UK?
Electric vehicles are not only reshaping the automotive landscape due to their environmental benefits, but they are also supported by a range of financial incentives and policy advantages in the UK.
These benefits are designed to encourage the adoption of cleaner transport solutions and align with the government’s objective to end the sale of new petrol and diesel cars by 2035.
The advantages available to electric vehicle owners extend well beyond the temporary Cleaner Vehicle Discount on the Congestion Charge.
They span multiple aspects of ownership, from tax relief to reduced operating costs and greater convenience in urban settings.
Zero Vehicle Excise Duty (VED)
Until April 2025, most electric vehicles are exempt from paying Vehicle Excise Duty (VED), commonly known as road tax.
This exemption applies to battery electric vehicles (BEVs) that produce zero CO2 emissions at the tailpipe. Owners of qualifying vehicles do not pay the standard first-year rate or annual renewal fees.
However, this benefit is time-limited. From April 2025, the government has confirmed that electric cars will begin to pay VED in line with other vehicles, although the rate structure will still be favourable compared to high-emission vehicles.
Plug-In Grant Discontinuation and EV Charging Support
Previously, new electric vehicle buyers in the UK could receive a Plug-in Car Grant, which offered up to £2,500 off the purchase price of eligible vehicles.
This scheme was discontinued in 2022, with the government redirecting funds toward expanding the EV charging network and other infrastructure.
Instead, EV owners can now benefit from the Electric Vehicle Homecharge Scheme (EVHS), which supports the cost of installing a home charging point. Under this scheme:
- Flat owners and renters can receive up to £350 off the cost of a home charger
- The installation must be carried out by an approved installer
- A dedicated off-street parking space is typically required
Workplace Charging Schemes are also available for employers seeking to provide charging stations for staff.
Reduced Benefit-in-Kind (BIK) Tax for Company Cars
For company car users, electric vehicles present significant tax savings under the Benefit-in-Kind (BIK) scheme. Employees who drive company-provided EVs pay a much lower tax rate compared to those with petrol or diesel cars.
- As of the 2024/25 tax year, fully electric vehicles are taxed at a 2% BIK rate
- This rate is confirmed to remain low through to 2027, rising gradually thereafter
This tax policy has made EVs particularly attractive for business fleets, corporate leases, and employees opting for salary sacrifice schemes.
Access to Clean Air Zones Without Charge
In addition to the London Congestion Charge and ULEZ, other cities across the UK have introduced Clean Air Zones (CAZs) to curb vehicle emissions.
Cities such as Birmingham, Bath, Portsmouth, Bristol, and Sheffield have implemented these zones.
Electric vehicles benefit from:
- Full exemption from CAZ charges
- No need to pre-register in most areas
- Ability to operate freely in otherwise restricted urban centres
As more cities introduce CAZs, the advantages of owning an EV continue to grow, especially for regular urban commuters and commercial drivers.
Free or Discounted Parking Incentives
Several local councils in the UK offer free or reduced parking charges for electric vehicles. These incentives vary by region but typically include:
- Free parking bays designated for EVs in city centres
- Discounted residents’ parking permits for zero-emission vehicles
- Permission to park longer than traditional vehicles in certain zones
Notable examples include areas in Westminster, Milton Keynes, and Nottingham, where EV owners enjoy considerable savings over the year.
Lower Operating and Maintenance Costs
Although not strictly a government policy, one of the most tangible benefits of EV ownership is the reduction in fuel and maintenance costs.
Electricity is significantly cheaper per mile compared to petrol or diesel, especially for those who can charge at home during off-peak hours.
Maintenance requirements are also lower, thanks to the simplified design of electric powertrains:
- Fewer moving parts reduce the likelihood of mechanical failures
- No need for oil changes, spark plugs, or exhaust repairs
- Regenerative braking systems reduce wear on brake pads
These ongoing savings can make EV ownership more economical over the vehicle’s lifetime, despite a higher initial purchase price.
Conclusion
Electric vehicles are not fully exempt from London’s Congestion Charge, but they can currently benefit from a 100% discount under the Cleaner Vehicle Discount scheme.
To take advantage of this, vehicle owners must ensure they meet TfL’s criteria and complete the registration process.
However, with the planned removal of the discount by the end of 2025, electric vehicle drivers will need to adapt to future policy changes.
As London continues to refine its congestion and emissions strategies, staying informed and compliant is essential for all road users.
Frequently Asked Questions
What is the difference between exemption and discount in congestion charges?
An exemption means a vehicle is not required to pay the charge under any circumstances. A discount, like the Cleaner Vehicle Discount, allows eligible vehicles to avoid paying the charge if they are registered but is subject to change or removal.
Are plug-in hybrid cars eligible for the Cleaner Vehicle Discount?
No, plug-in hybrid electric vehicles (PHEVs) do not qualify for the Cleaner Vehicle Discount as they are not zero-emission at the tailpipe.
Will electric cars have to pay the Congestion Charge after 2025?
Yes, starting from 25 December 2025, all vehicles—including fully electric ones—will be required to pay the full Congestion Charge if they enter the charging zone during active hours.
Can a non-UK registered electric car get the discount in London?
Yes, but the vehicle must still be registered with TfL and meet all the eligibility criteria. Supporting documentation will be required during the registration process.
How long does it take to process the CVD application?
TfL typically processes applications within 10 working days, although this may vary during peak periods.
Is there a renewal requirement for the Congestion Charge discount?
Yes, registration for the Cleaner Vehicle Discount must be renewed annually, and the £10 fee paid each year.
What happens if an EV is not registered but enters the Congestion Zone?
If an electric vehicle is not registered with TfL for the discount, it will be subject to the full Congestion Charge, regardless of its emissions or fuel type.
