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 System | Proposed System | |
|---|---|---|
| Congestion Charge | EVs exempt (save £15/day) | Replaced by per-mile charge |
| ULEZ | EVs exempt | Replaced by per-mile charge |
| Road Tax | EVs pay from 2025 | Rolled into per-mile charge |
| EV rate | £0/day | Lower 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:
- £350 off a home charger
- Up to £3,750 off a new EV
- 0% VAT on solar panels
- ECO4: free solar for eligible households
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.