The London Congestion Charge: What Do You Need To Know?

It’s no secret that London is a pretty expensive place to live but did you know that you could save quite a lot of money just by driving an electric car or van, as opposed to a vehicle powered by conventional methods. This is primarily because of the London congestion charge. Let’s take a look at what the London congestion charge is, and how it can save you a ton of money.

What is the congestion charge?

Introduced in central London in 2003, the congestion charge was created with the intention of reducing the amount of traffic in the capital, with the added bonus of reducing carbon emissions and pollution. It also works to encourage people to use more eco-friendly methods of transport like busses and the tube, cycling or simply just walking instead of taking your car. The congestion charge is applied to every petrol or diesel vehicle driven within the congestion zones between the selected hours of 7 am and 10 pm. This is applicable every day of the year aside from Christmas day. But there are also some other exemptions, which we will discuss later.

Who has to pay the congestion charge?

Everyone unless you have some form of exemption. There are a couple of things that would exempt you from having to pay for the congestion zone, like living within the zone or holding a blue badge. There is also a 100% discount for any vehicle that meets the cleaner vehicle-discount criteria.

As of the 25th of October 2021, only battery-electric or hydrogen fuel celled vehicles are eligible to receive the discount; but you must still apply for it. 

What does the congestion charge cost?

Alongside the ecological benefits, Transport for London also earns a good amount of money for this charge. How? Because it’s £15 for the day, no matter how long you spend in the congestion zone, even if you simply pass through once. This is where those with exemptions can save a lot of money. Let’s do a little bit of math:

Assuming there are 22 working days of the month on average, a 100% discount would mean you’re saving a whopping £330 per month. Assuming that you work for at least 260 days of the year and need to travel through the congestion zone for all of those, you could save nearly £4000 a year by using a fully electric vehicle, compared to a petrol or diesel vehicle that would have to pay the full amount. 

What cars and vans are exempt from the congestion charge?

As of October 2021, nothing has changed for fully electric vans. That means that drivers of fully electric vehicles can help themselves to those sweet savings that we talked about earlier. 

Will the congestion charge change in the future?

Unfortunately, the London Congestion Charge is likely here to stay and most probably grow in size and price. Other cities like Birmingham have already implemented their own clean air zone.

While a little expensive for those IT effects, these clean air zones are for the benefit of everyone. They have helped to improve the overall quality of life for a lot of Londoners by encouraging them to walk or cycle, which is beneficial for everyone’s health as well as reducing emissions. 

Not to mention those sweet savings that those with electric cars can benefit from, and as electric vehicles become more affordable and widespread, more people will benefit from these savings.  

The differences between the ULEZ and The Congestion charge

While very similar, the congestion charge and the Ultra Low Emission Zone (ULEZ) are slightly different. They both operate over the same area in London, the main difference being that the ULEZ operates for 24 hours, every day of the year. Smaller vehicles and bikes must pay a fee of £12.50 per day, while larger lorries and vans have to pay up to £100 per day to enter the zone. 

As of October, these boundaries are expanding to the North and South Circular roads. This isn’t too important to know if you have an electric vehicle, but for those that don’t, you could have to spend even more if you’re planning on driving through London.

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