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Daanyaal Mahmood
I write about electric cars, schemes, and how they actually work.
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.
Clean Air Zones VS Ultra-low Emission Zones VS Congestion Charge Zones
Clean Air Zone – An area where targeted action is taken to improve air quality. When a vehicle enters or moves through a clean air zone, the charge depends on the type of vehicle.
Low Emission Zone – A defined area where access by some polluting vehicles is restricted or deterred to improve air quality. Favours electric, hybrid, hydrogen, and low or non-polluting vehicles.
Ultra-Low Emission Zone – An area in London where a fee is charged for driving the most polluting vehicles. It covers all parts of the city within the North and South circular roads.
Congestion Charge – A fee charged on most cars and motor vehicles driven into the congestion charge zone in Central London. 7 AM – 6 PM (weekdays), 12 PM – 6 PM (weekends). The area is roughly equivalent to Zone 1 on the tube map. The congestion charge costs £15 a day if you drive within the zone on any day, except from Christmas Day through New Year’s Day. Find out more here.
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.
Employers Introducing the Scheme
Employees Going Green
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.
Clean Air Zone Categories:
- A – Buses, coaches, taxis, and private hire taxis.
- B – Buses, coaches, taxis, private hire taxis, and heavy goods vehicles.
- C – Buses, coaches, taxis, private hire taxis, heavy goods vehicles, vans, and minibuses.
- D – Buses, coaches, taxis, private hire taxis, heavy goods vehicles, vans, minibuses, and cars – the local authority has the option to include motorcycles.
There are standards that must be met for each vehicle type to determine if they will be charged. Buses, coaches, and HGVs must meet Euro 6 standards. Vans, minibuses, taxis private hire cars and cars must meet Euro 6 (diesel) and Euro 4 (petrol) standards. Motorcycles must meet Euro 3 standards.
Every City With Clean Air Zones
Bath – CAZ C
Private cars and motorbikes: Not charged in Bath’s CAZ C.
HGVs: £100 per day.
Vans & LGVs: £9 per day (for larger motorhomes and horse transporters classed as PHGV and not used commercially; standard LGVs are also £9).
Birmingham – CAZ D
Non-compliance applies to all vehicle types in Birmingham’s CAZ D.
HGVs: £50 per day.
Cars & LCVs (including taxis and vans): £8 per day.
Bristol – CAZ D (introduced November 2022)
Cars, Taxis, Vans: £9 per day in Bristol’s CAZ D.
Buses, Coaches, Lorries (HGVs): £100 per day.
Zone operates 24/7, 365 days a year.
Liverpool
Council has moved away from a CAZ; they’re working on a Clean Air Plan without charging.
No CAZ charges currently apply.
Newcastle, Gateshead, and North Tyneside – CAZ C
CAZ C is in operation in parts of Newcastle and Gateshead.
Private cars and motorbikes are NOT charged.
Older taxis, vans, buses, coaches and HGVs are charged if non-compliant.
Portsmouth – CAZ B (launched November 2021)
HGVs, Buses, Coaches: £50 per day (not directly cited, but consistent with other CAZ B schemes).
PHVs: £10 per day (not directly cited, but consistent with other CAZ B schemes).
Cars and vans are NOT charged in CAZ B.
Sheffield – CAZ C (launched February 2023)
Coaches, Buses, HGVs: £50 per day (not directly cited, but aligns with national CAZ C rates).
LGVs, Taxis: £10 per day (not directly cited, but aligns with national CAZ C rates).
Scotland (Aberdeen, Dundee, Edinburgh, Glasgow) – LEZ
Low Emission Zones (LEZs), not CAZs.
Penalty Charge Notice (PCN) issued to non-compliant vehicles; charged to registered keeper.
Charges and enforcement differ from CAZs.
Bradford – CAZ C (launched September 2022)
Passenger cars and motorbikes: Not charged.
HGVs, Buses, Coaches: Charged (exact daily charge not specified, but you can check the chargers here).
LGVs, Minibuses, Hackney carriage, Private hire vehicles: Charged if non-compliant.
Greater Manchester
CAZ is currently on hold; an investment-led, non-charging plan is in place as of January 2025.
No charging CAZ is planned or required at this time.
Initial plans (now scrapped): Buses, Coaches, HGVs – £60; Taxis/PHVs – £7.50; LGVs – £10 (with temporary exemption).
Leicester
CAZ plans scrapped due to improved air quality; no CAZ in operation.
Oxford – Zero Emission Zone (ZEZ, launched February 2022)
Only zero-emission vehicles enter for free.
ULEV (Ultra-Low Emission Vehicle): £2 per day.
LEV (Low Emission Vehicle): £4 per day.
All other vehicles: £10 per day.
Charges apply 7 AM – 7 PM, every day; charges will double in August 2025.
London 2025 ULEZ
The ULEZ (Ultra Low Emission Zones) in London covers all the London Boroughs, excluding the M25.
It launched in August of 2023 and runs every day with the exception of Christmas. To look into the prices check on the gov website, or check out our breakdown below!
| Vehicle Type | Daily Charge | Coverage Area | Operating Hours | Notes |
|---|---|---|---|---|
| Non-compliant cars, motorcycles, vans | £12.50 | All London boroughs* | 24/7 (except Christmas) | Euro 4 petrol, Euro 6 diesel |
| Lorries, buses, coaches (>3.5 tonnes) | £100 | All London boroughs* | 24/7 (except Christmas) | Euro VI standard |
Information Overload
We hope we helped you understand the ULEZ and CAZ zones and maybe even saved you money on the charges, but if you live in these areas or travel frequently to these locations Electric Vehicles will definitely help you avoid all these charges especially if you live in London! Check out our Salary Sacrifice Scheme to help you get an EV!
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