Last updated: 6 April 2026

Updated March 2026

London EV road pricing: What it means for electric car drivers

London is planning pay-per-mile charges that will end the EV Congestion Charge exemption. Here's what we know, when it's coming, and how to offset the costs.

London's proposed pay-per-mile road pricing

Transport for London (TfL) is consulting on a radical overhaul of how drivers pay to use London's roads. The plan would replace three separate charges — the Congestion Charge (£15/day), ULEZ (£12.50/day), and road tax — with a single pay-per-mile system.

The critical change for EV drivers: electric vehicles would no longer be fully exempt.

What changes for EV drivers?

Current SystemProposed System
Congestion ChargeEVs exempt (save £15/day)Replaced by per-mile charge
ULEZEVs exemptReplaced by per-mile charge
Road TaxEVs pay from 2025Rolled into per-mile charge
EV rate£0/dayLower per-mile rate (TBC)

How much could it cost?

While exact rates haven't been announced, analysis suggests:

  • Petrol/diesel: Estimated 10-15p per mile in central London
  • Electric vehicles: Estimated 3-7p per mile (lower rate to maintain incentive)
  • Time-of-day pricing: Higher rates during rush hour, lower off-peak
  • Zone-based: Higher in central London, lower in outer boroughs

What EV drivers currently save

Right now, driving an EV in London gives you significant exemptions:

  • Congestion Charge: £15/day saved (£3,900/year for daily commuters)
  • ULEZ: £12.50/day saved (if your petrol car doesn't comply)
  • Combined: Up to £7,150/year in avoided charges

Under the new system, these exemptions would be replaced by a lower per-mile rate. For many drivers, costs will still be lower than the petrol equivalent — but the days of driving in London for free in an EV are likely ending.

How to prepare: offset costs with home charging

The smartest response to road pricing is to minimise your other EV costs. And the biggest variable cost you control is how you charge.

Option 1: Switch to an off-peak tariff

Tariffs like Octopus Go charge just 7.5p/kWh overnight. For a 60kWh battery, that's a full charge for £4.50 — enough for 200+ miles. Even with road pricing, your total per-mile cost stays well below petrol.

Option 2: Install solar panels

Solar panels + an EV charger = free fuel. A 4kW solar system generates enough electricity for ~8,000 miles per year at zero cost. This completely offsets any new road pricing charges for most commuters.

Option 3: Claim every grant available

Stack your savings:

When is this happening?

TfL is still in the consultation phase. The earliest a pay-per-mile system could launch is 2027-2028, though some analysts expect 2030+. The Congestion Charge EV exemption is already under review and could be reduced before the full road pricing rollout.

Act now, not later: Even if road pricing is years away, the economics of home charging and solar are compelling today. And EV grants tend to shrink over time — the sooner you claim, the more you save.

Common questions

Under the proposed pay-per-mile system, EVs would no longer be fully exempt. Instead, they'd pay a lower per-mile rate than petrol/diesel vehicles. This hasn't been implemented yet and is still in consultation.
TfL is still in consultation. The earliest launch date is estimated at 2027-2028, with some analysts expecting 2030+. The Congestion Charge EV exemption may be reduced before the full rollout.
Exact rates haven't been announced. Analysis suggests 3-7p per mile for EVs versus 10-15p for petrol/diesel, with higher rates during rush hour and in central zones.
Switch to an off-peak EV tariff (7.5p/kWh), install solar panels for free charging, and claim all available grants (£350 charger, £3,750 car, 0% VAT solar). Home charging + solar can make your per-mile cost effectively zero.

Disclaimer: Great British Energy is an independent information service. We are not a government body and are not affiliated with Great British Energy (gbe.gov.uk). Grant amounts, eligibility criteria, and scheme details may change. Always verify with the relevant government department or your local authority before making financial decisions. We may receive referral fees when you use our partner installers — this doesn't affect our editorial recommendations. Content last reviewed: 4 March 2026.

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