Do Electric Cars Pay the London Congestion Charge? EV vs PHEV Explained
Most drivers assume electric cars are still exempt from the London Congestion Charge — but that’s no longer the case.
As of 2026, both electric vehicles (EVs) and plug-in hybrids (PHEVs) are now treated the same when entering central London.
In this guide, we break down:
Whether EVs still qualify for exemptions
How plug-in hybrids compare
What it means for drivers and businesses
So the answer now is Yes there is a difference, but as of now the key point is this:
Neither plug-in hybrids (PHEVs) nor electric cars automatically get a Congestion Charge exemption anymore.
Current London Congestion Charge rules (March 2026)
The old Ultra Low Emission Discount (ULED) — which gave 100% exemption — ended in December 2025
It applied to:
Electric cars
Plug-in hybrids (low CO₂)
That scheme is now closed to new applicants and expired
What this means now
Electric cars
No longer exempt
Must pay the £15/day congestion charge
Still benefit from:
Low fuel costs
Lower running costs
Exempt from ULEZ charges
Plug-in hybrids 🔌
No exemption
Also pay £15/day
Still produce emissions, so:
Must meet ULEZ standards (most modern ones do)
The only exception
If a vehicle was:
Registered for the discount before the cut-off
And still within the grace period
…it may still be temporarily exempt but this is phasing out.
Key takeaway
Vehicle Type:
Electric (EV) - £15/day
Plug-in Hybrid - £15/day
There is now NO difference between them for congestion charge.
What still differs
Where EVs still win:
No tailpipe emissions
Better company car tax (BiK)
Lower fuel/energy cost
Where PHEVs can still work:
Longer range without charging anxiety
Good for mixed fleet use
Subject to Euro 6e-bis changes coming in April 2026 as detailed In Our Blog Here
Should You Still Choose an Electric Car?
Despite the change, EVs still come out on top:
Advantages of EVs:
Much lower company car tax - See our Company Car Benefit in Kind Guide
Low fuel costs (vs petrol/diesel)
Lower maintenance
Future-proof against regulation
Where PHEVs fall behind:
Higher real-world fuel costs
Less tax-efficient
No congestion charge benefit
For most drivers — especially business users — EVs are still the smarter financial choice
FAQ Section
Do electric cars still get free congestion charge?
No — the exemption ended in December 2025.
Are plug-in hybrids exempt from congestion charge?
No — they must pay the full daily charge.
Do EVs still avoid ULEZ charges?
Yes — fully electric cars remain exempt from ULEZ.
Conclusion
While the congestion charge exemption has ended, electric cars still offer significant cost advantages especially for company car drivers.
If you're regularly driving into London, the key decision is no longer about avoiding the charge it's about minimising total running costs and tax exposure.
