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The congestion charge in central London will rise to £18 next year as part of an overhaul by mayor Sir Sadiq Khan that includes electric vehicles paying the fee for the first time.

The current daily rate of £15, which has not been raised since 2020, will increase on January 2, then continue to climb in line with Tube fares or inflation, Transport for London announced on Thursday. 

The aim is to prevent public transport becoming relatively more expensive and to avoid incentivising people back into personal vehicles. 

EVs have until now been exempt from the charge, but will have to pay 75 per cent of the full amount starting next year, rising to 87.5 per cent from March 2030.

But motorists will only receive the discount if they sign up for the “auto-pay” service that automatically deducts funds from their bank account. 

Electric vans or battery-powered delivery vehicles that register for daily payment will receive a 50 per cent discount. 

AA president Edmund King called the EV decision a “backwards step”. He said: “Many drivers are not quite ready to make the switch to electric vehicles, so incentives are still needed to help them over the line. The mayor needs to reconsider to continue to help more essential van and car journeys in the capital go electric.”

TfL said the changes were needed to ensure the scheme “remains effective at managing traffic and congestion within central London”. 

Khan said: “While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.”

The congestion charge was introduced in 2003, with a daily rate of £5, reaching £15 by 2020. 

Izzy Romilly, sustainable transport manager at climate charity Possible, welcomed the decision to increase the congestion charge alongside public transport fares in the future.

“We need to cut traffic and invest in accessible and affordable public transport, and make sure Londoners can walk, wheel and cycle safely,” she said.

Some 40,000 motorists pay the charge each day, while anyone driving in London with an older petrol or diesel car also faces the capital’s ultra-low emission zone (Ulez) charge, which is £12.50 a day. 

The number of EVs registered in the capital since 2019 has risen sixfold to 116,000, accounting for about a fifth of the vehicles on the road.

Under the changes, residents in the Ulez area will still be entitled to a 90 per cent discount, while EVs that are part of a car-sharing club will receive a full 100 per cent discount, in a move to try and reduce ownership. Low-income or disabled residents will receive a full discount.