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Upcoming Congestion Charge & Tax Changes for PCO EV Drivers in London – What You Need to Know

Big changes are coming for electric vehicle (EV) drivers in London – yes, even for PCO drivers who’ve enjoyed a nice run of benefits. But here’s the good news: even with the upcoming congestion charge and new vehicle tax, EVs remain the smartest and most affordable choice for private hire work in the capital.


Let’s break down what’s changing – and why EVs are still the best long-term move for your business.


📅 The Changes: What’s Coming and When?


🚧 Congestion Charge Discount Ending – But Not Yet

  • Until 25 December 2025: Fully electric vehicles remain exempt from the £15 daily Congestion Charge.

  • From 26 December 2025: EVs will no longer qualify for the Cleaner Vehicle Discount and will need to pay the charge like all other vehicles.

That gives you over half a year of continued savings – and even when the exemption ends, EVs still have other cost advantages that make them cheaper to run.


💸 EVs Now Pay Road Tax (VED) – Starting April 2025

From April 2025, electric vehicles will no longer be exempt from Vehicle Excise Duty (VED), also known as road tax.

Here’s what you’ll pay:

  • First year (new EVs): £10

  • Standard rate after that: £195 per year

It’s a new cost, yes – but when you compare it to the total running costs of diesel or petrol cars, EVs still win by a long shot.


✅ The Positives: Why EVs Are Still the Best Bet for PCO Drivers

Here’s why you’re still better off in an electric car:

🔋 Lower Fuel Costs

  • Charging an EV can cost 70–80% less than filling up with diesel or petrol.

  • Home or overnight charging is especially cheap – and some operators even offer charging incentives.


🧰 Cheaper Maintenance

  • EVs have fewer moving parts – no oil changes, no exhaust issues, no gearbox problems.

  • That means less time off the road and lower servicing bills.


💨 ULEZ Exemption

  • EVs remain fully exempt from the Ultra Low Emission Zone (ULEZ) charge — currently £12.50/day for non-compliant cars.


🏆 Still the Cleanest Option

  • Choosing electric keeps London’s air cleaner, which supports your passengers’ health and keeps TfL’s long-term goals aligned with your business.


👏 Final Word: The EV Advantage Isn’t Going Anywhere

Yes, the free ride is slowly winding down — but the EV advantage is far from over. Lower running costs, cleaner air, smoother driving, and long-term savings all still make electric vehicles the best choice for professional drivers in London.

You’re still ahead of the game — and with smart planning, you’ll stay there.



 
 
 

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