Millions of drivers have 'exemption' scrapped meaning they face £15 daily charge
From 25 December 2025, all vehicles, including electric and hydrogen-powered models, will be required to pay the £15 London Congestion Charge.
More drivers face being slapped with new car tax fees in a major UK city. Electric vehicle (EV) drivers are set to face another financial blow as the era of free city driving comes to an end. From 25 December 2025, all vehicles, including electric and hydrogen-powered models, will be required to pay the £15 London Congestion Charge.
Previously, electric car owners could pay £10 to receive an exemption to the Congestion Charge. However, it’s worth noting that there’s no Congestion Charge from 25 December to 1 January, so this charge properly comes into effect from 2 January 2026.”
John Wilmot, CEO of car leasing comparison site LeaseLoco.com commented: “These upcoming changes show a significant shift in how vehicle ownership is incentivised and regulated in the UK – particularly for electric vehicles.
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“While many of the measures are aimed at improving infrastructure and safety, they also reflect a move towards equalising the playing field between EVs and traditional petrol or diesel vehicles. The removal of key EV financial perks, such as the Vehicle Excise Duty (VED) exemption and Congestion Charge discounts, will undoubtedly impact the cost effectiveness of owning or leasing an EV.
“For many drivers, these incentives were a major factor in the decision to transition to electric. So it’s possible that these changes could actually slow the momentum of EV adoption, particularly among drivers who were on the fence about making the switch.
“But on the positive side, the new reliability standards for EV charging infrastructure could address a long standing concern. For the leasing market, improved charging accessibility and ease of use may help offset some of the financial impacts and maintain interest in EVs as a viable option.
“Ultimately, these changes emphasise the need for both drivers and relevant motoring businesses to stay informed and adapt quickly.”