London’s Congestion Charge has changed, and for fleet operators running electric vehicles (EVs), the rules are no longer as generous as they once were.
From January 2026, electric fleets are now paying to enter central London, ending the long-standing 100% exemption. If you manage a fleet, especially one operating in or around the capital, these changes will have a direct impact on costs, compliance, and day-to-day operations.
In this guide, we break down what’s changed, what it means for electric fleets, and most importantly, what fleet managers can do next.
What Has Changed with the London Congestion Charge?
EVs Are No Longer Fully Exempt
For the first time, electric vehicles must pay the London Congestion Charge.
Instead of a full exemption, EVs now fall under a tiered Cleaner Vehicle Discount, available only if vehicles are registered for Auto Pay.
Current Daily Charges
- Standard Congestion Charge: £18 per day
- Electric cars: 25% discount → £13.50 per day
- Electric vans, HGVs & quadricycles: 50% discount → £9 per day
If vehicles are not registered for Auto Pay, the discount doesn’t apply, meaning full charges.
Why TfL Made These Changes
Transport for London (TfL) has said the move is about managing congestion, not discouraging electric vehicles.
Without the changes, TfL estimates over 2,000 additional vehicles would enter the Congestion Charge Zone each weekday, leading to:
- Increased congestion
- Slower journey times
- Higher costs for businesses and essential services
In short: more EVs on the road still means more traffic.
What This Means for Electric Fleets
Higher Operating Costs
Electric fleets that were previously cost-free in the Congestion Charge Zone now face daily charges that add up quickly, especially for:
- Service fleets
- Delivery vans
- Company cars
- Private hire and minicab fleets
Even with discounts, frequent trips into central London can significantly impact budgets.
Auto Pay Is No Longer Optional
If your fleet vehicles aren’t set up on Auto Pay, you’re paying more than you need to, and risking missed payments and penalty charges.
Managing Auto Pay across dozens (or hundreds) of vehicles can become an admin headache very quickly.
Future Changes Fleet Operators Should Plan For
Discounts Will Reduce Again in 2030
From March 2030:
- Electric cars: discount drops to 12.5%
- Electric vans, HGVs & quadricycles: discount drops to 25%
This means EV operating costs in London will continue to rise, making long-term fleet planning more important than ever.
Residents’ Discount Changes (From 2027)
For fleet vehicles registered to residential addresses:
- Existing residents keep the 90% discount
- New applicants from March 2027 must use electric vehicles
- Some low-income and disability benefit exemptions apply until 2030
How Fleet Managers Can Stay in Control
Centralise Charge Management
Trying to track Congestion Charges, ULEZ, LEZ, Dart Charge, and parking fees across a fleet is time-consuming and risky.
That’s where Fleet Service GB’s Transport Account Administration comes in.
We deal with all charges for you, including:
- Congestion Charge
- ULEZ
- Dart Charge
- Tolls and road user charging
No missed payments, fines, or admin stress.
Review Routes and Usage
Look at:
- How often vehicles enter the Congestion Charge Zone
- Whether journeys can be rescheduled outside charging hours
- If alternative routes or consolidation can reduce chargeable trips
Build Charges into Fleet Cost Forecasts
With discounts reducing over time, fleet operators should factor Congestion Charges into:
- Total cost of ownership (TCO)
- EV transition plans
- Contract pricing and service margins
Why Fleet Service GB Helps Fleet Operators Stay Ahead
Fleet Service GB supports businesses of all sizes with end-to-end fleet management, helping operators stay compliant, cost-efficient, and future-ready.
What We Do:
- Transport Account Administration (we manage all road charges)
- Fleet compliance support
- Cost control and reporting
- Day-to-day fleet admin taken off your plate
Learn more about how we support fleet operators here
FAQs About London Congestion Charge and Electric Fleets
Do electric fleet vehicles still get a Congestion Charge discount?
Yes, but only if they are registered for Auto Pay. Electric cars get a 25% discount, while electric vans and HGVs get 50%.
Do fleets have to pay the Congestion Charge every day?
Only when vehicles drive within the Congestion Charge Zone during charging hours.
What happens if my fleet isn’t on Auto Pay?
You’ll pay the full charge and risk penalty notices if payments are missed.
Will Congestion Charge discounts for EVs be removed entirely?
Discounts will reduce further in 2030, suggesting costs will continue to rise over time.
FAQs About Fleet Service GB
What is Transport Account Administration?
It’s a service where Fleet Service GB manages all road user charges for your fleet, ensuring everything is paid correctly and on time.
Can Fleet Service GB manage Congestion Charges for electric fleets?
Yes. We manage Congestion Charge payments for electric, hybrid, and ICE fleets.
Final Thoughts
The London Congestion Charge changes mark a big shift for electric fleets. While EVs are still cheaper than petrol or diesel in many cases, they’re no longer cost-free, and poor charge management can quickly eat into savings.
With the right systems, planning, and support in place, fleet operators can stay compliant, reduce costs, and keep their fleets moving smoothly.
Find out how Fleet Service GB can help manage your fleet more efficiently here.