Transport for London’s (TFL) proposal to slash the Cleaner Vehicle Discount (CVD) for electric cars will only lead to more polluting cars on the capital’s roads, the authority has been warned. Under plans being consulted on, the 100 per cent discount for electric vehicles (EVs) will be cut to 25 per cent from the start of 2026, while the fee for driving in the Congestion Charge Zone (CCZ) will rise from £15 to £18.
The moves will likely see car clubs, which offer short-term car rentals to members, become “unaffordable” for consumers, according to shared transport charity Collaborative Mobility UK (CoMoUK). The charity, which warned that the change could cost car club operators more than £1million a year, have now called for EVs in the schemes to be treated differently from private electric cars.
Richard Dilks, chief executive of CoMoUK, told the Local Democracy Reporting Service: “Around 37 per cent of the car club fleet in London are EVs, compared to just 5 per cent of all cars in London. Operators have been leading the way in the transition to clean car travel, but now face being penalised by the changes announced by TfL.
“The current 100 per cent discount for EVs entering the Congestion Charge zone must continue for car club vehicles, which should clearly be treated differently to private cars. This would recognise the ability of car clubs to cut traffic congestion, carbon emissions, and user costs.
“It would also allow Londoners to keep accessing alternatives to fossil fuel vehicles at a fraction of the cost of ownership. Each car club vehicle replaces 31 private cars in the capital, freeing up space, cutting congestion and improving air quality.
“It would therefore be utterly baffling if car clubs were treated as private cars under these changes. We hope that TfL listens before it is too late. There are no logical grounds for continuing to discriminate against cars that are shared between many people, including those on lower incomes, in favour of privately-owned cars used by far fewer people.”
“If these changes go ahead, car clubs will face significant extra costs which will be difficult not to pass onto customers, meaning that potential supporters of the EV transition could be priced out of accessing the vehicles.”
CoMoUK said that one car club currently operating in London will see an average cost rise of £878,000 – £305,000 due to the rise in Congestion Charge, and £573,000 once the CVD ends. They say maintaining an EV in a car club costs £6,000 a year more than a petrol or hybrid car in the same fleet, meaning people will likely be priced out of club membership and instead resort to private use.
On Thursday the LDRS revealed that Labour’s own Transport spokesperson on the London Assembly, Elly Baker, was calling for traders to be exempt from TfL’s changes. On Friday, she told the LDRS: “TfL should be backing the transition to Electric Vehicles, including for car clubs, with a 100% discount on the Congestion Charge.
“Car clubs help cut overall car journeys and ease congestion by giving Londoners access to a car when they truly need one, without having to own it. TfL should be making it as easy as possible to promote the growth of car clubs and incentivise their vehicles to be electric.”
Several key stakeholders have also weighed in on the proposed changes to EVs in car clubs. James Taylor, general manager at Zipcar, said: “Car clubs are a proven congestion-reducing measure, they provide a vehicle when Londoners need one, reducing the need for private car ownership.
“Because of this, car clubs also help to remove older, more polluting private vehicles from London’s roads. This is why we believe that car clubs should be treated differently to private vehicles in the Congestion Charge proposals.”
Dan Gursel, commercial director at Enterprise Car Club, said: “Car clubs have the potential to play a significant role in easing urban congestion and helping reduce emissions. Considering these benefits, we believe car club vehicles should be exempt from the London Congestion Charge.”
Marc Roberts, chief technology officer at Hiyacar, said: “These proposed Congestion Charge changes risk pushing already strained operators past the tipping point, making it harder for Londoners to access affordable and sustainable transport. Penalising shared EVs while favouring private ownership sends the wrong message at the worst possible time.”
TfL response in full
A TfL spokesperson said: “The Congestion Charge has been in place since its introduction in 2003 to manage traffic and congestion in the central one per cent of London during the busiest times of day.
“Without the changes proposed in our consultation, the charge would become less effective, with an estimated additional 2,200 vehicles in the zone on an average weekday.
“Under these proposals, we are also proposing a new Cleaner Vehicle Discount for those who do need to drive in the zone so they would still be able to benefit from a discount if they drive an electric vehicle, with a greater reduction for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans for vehicles used for commercial purposes.
“Central London is one of the best-connected places in the world with high quality sustainable transport options.”
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