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Transport for London (TfL) will discontinue the Cleaner Vehicle Discount (CVD), which currently grants a 100% discount on the Congestion Charge to EV’s and Hydrogen vehicles from January next year.
From 2 January 2026, the standard Congestion Charge will increase to £18 per day. Electric cars will receive a 25% discount, reducing their daily charge to £13.50, while electric vans, HGVs and quadricycles will benefit from a 50% discount, paying £9 daily. However, these discounts will only apply to vehicles registered on TfL’s Auto Pay system.
Residents living within the charging zone who already have the Residents’ Discount before 1 March 2027 will maintain their 90% discount regardless of vehicle type. However, new applicants after this date will only qualify for the discount if they drive an electric vehicle.
Low-income and disabled residents can continue applying for the discount irrespective of their vehicle type, though this exemption will only last until March 2030.
Businesses have expressed serious concerns about the additional costs. The Electric London Coalition, representing companies including AA, Openreach and Royal Mail, estimates that professional drivers entering London five days a week could face extra costs of up to £3,000 annually.
Yet another blow!
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