Leading the Charge: Electric London – People, Policy and the Price of Change

0:05London's transition to electric vehicles isn't just a story about infrastructure investment or policy It's a story about people. The mums and dads doing the school run, the Uber drivers and couriers who keep the city connected, and the small businesses relying on vans and deliveries to stay afloat. For years, London's Cleaner Vehicle Discount has supported that shift, allowing electric vehicles to enter the congestion zone for free. That single policy has helped thousands of Londoners, from families to small businesses and professional drivers, make the leap to electric, cutting costs for drivers and cutting emissions for communities.

0:41But this Christmas the exemption will end. From January 2026 electric vehicle drivers will pay up to£13.50 a day to enter central London. For those already stretched by the cost of living that's not a small sum. It could mean parents rethinking their school-run EV, drivers weighing up whether it's worth taking jobs in central London or small businesses facing new overheads for every van trip they make. Advocates warn the policy risks slowing down the transition just as the city needs to accelerate it, sending nicked signals to the very people who've embraced change. And for many, it raises a simple but important question.

1:17What message does this send to the average Londoner who has already tried to do the right thing? In this third and final episode of Leading the Charge, we're exploring the human angle. How ordinary people, workers and small businesses will feel the effects of this change in their day-to-day lives. Joining us now is Andrew Prem. He's the General Manager at Uber in the UK. Andrew, how important has the cleaner vehicle discount been for Uber drivers in London when deciding to switch to electric? The cleaner vehicle discount, or CBD, has been hugely important in London. London has been incredibly successful in encouraging drivers to switch to pure electric vehicles.

1:55And what we've found is that success requires very supportive public policy or city policy combined with supportive corporate investment. And I'm really proud to say that today, 40 % of miles driven by Uber in the capital are pure electric vehicle, and the majority of the rest are hybrid, actually. And the CBD has been absolutely crucial to that. London is a leading city globally, both for London as a whole, for cities as a whole, and for Uber in terms of having encouraged drivers to switch to pure electric vehicles with the massive benefits in clean air that come with that. And what have you heard directly from Uber drivers about the end of the exemption?

2:42How are they reacting to the news? I mean, drivers are very, very anxious about it. They're anxious about the uncertainty and they're anxious about what appears to be a significant increase in the cost that they'll face. So drivers of electric vehicles today don't have to pay any congestion charge, whereas, you know, non-exempt vehicles have to pay£15. In the future, that standard price goes to£18, but electric vehicles under the current proposals will still have to pay£13.50. So that's£13.50 per day that they do not have to pay today. And, you know, that comes to about£3 ,000 of extra costs for a driver compared to what they have to do today.

3:23And you can imagine for anyone, whether that's a private individual, a family, a private hire, vehicle driver, whatever, that's£3 ,000 is a huge increase in costs that they'll face. And I mean, drivers are, frankly, they're more than anxious about it. What they're saying to us is, you know, A, we can't afford that. B, hang on a minute. We were encouraged by, you know, city policies and Uber to make the switch to electric vehicles. We did the right thing. Now what, we're being punished for it. Do you worry that drivers who've gone electric? might switch back to petrol or diesel because of the added cost.

3:56Yeah, I'm very, very concerned about that. Look, we share the same objectives ultimately as City Hall and Transport for London. We really want London to be a city that has very clean air and manageable levels of congestion. And the cleaner vehicle discount that exists until Christmas this year has really supported that, along with the investment that we've made, which is actually going to be£145 million up to the end of this year, to encourage drivers to switch to electric vehicles. But I am anxious that they are going to switch back because at the end of the day, an increase in cost to the tune of£3 ,000 a year is just very, very substantial for anyone.

4:35Uber drivers are switching to electric vehicles at five times the rate of like a normal private driver. And it's kind of obvious really, because you know, private hire vehicle drivers like Uber drivers, you know, they drive for their work and And they drive a lot. And that actually means they're very, in a sense, efficient because, you know, private hire vehicles are not sitting around doing nothing. They're not sitting around clogging up the streets being parked. They're always busy moving people around the place. And actually, that's the reason why it's so important to support, should we say, professional drivers such as private hire vehicle drivers in their transition to electric vehicles, because they can kind of do more than anyone else to bring clean air to the capital.

5:18and also they're just an efficient use of road space. How do you think these changes could impact passengers or the wider businesses that rely on Uber and other delivery servers to reach customers every day? There won't be a kind of continuation of service. Service will continue, just the question as to whether it's new electric vehicles or whether it's petrol cars. But I think there's a really important point that one needs to remember. We tend to think about all of this in the context of the congestion charging zone, which is obviously very much the central London zone. But kind of to state the obvious, these same cars, these same electric vehicles, they just drive in the congestion charging zone.

5:57They drive all over Greater London, and obviously also occasionally further afield. And what we have found is that over 90 % of the benefits of clean air from electric vehicles are actually felt beyond the congestion charging zone. So I think it's just really important for everyone to recognise that a decision about charging or an exemption to the congestion charge for electric vehicles in central London just has massive benefits throughout Greater London and the rest of the country. Stepping back from Uber specifically, how do you think this change will affect the average Londoner, whether it's families who've invested in an electric vehicle or small businesses who want to be competitive or communities who need deliveries?

6:40I think everyone who's made an investment in switching to an electric vehicle feels that they've done the right thing for society. They recognize that electric vehicles are a benefit in terms of clean air. And therefore, anyone who's made that investment, whether it is a family, whether it is a small business, whether it's a delivery business or whatever, if the exemption from the congestion charge disappears or is significantly reduced, then they're going to feel like, well, what was the point of doing the right thing? under the current proposals, if you're driving in the congestion charging zone five days a week, that's£3 ,000 a year.

7:17I mean, it's an enormous amount of money. It's a real shock to the system at a time when, look, you know, I think everyone's finding it hard to make ends meet. And so I think that's simply the wrong thing to do on many, many different bases, whether that's congestion, whether that's cleaner air, whether that's just affordability for people in the capital. So far, we've heard how the end of the cleaner vehicle discount could undo years of progress in the electrification of vehicles in London. But this issue runs deeper than just one company or one sector. For many workers across the city, from self-employed drivers to delivery couriers and tradespeople, this isn't just frustrating, it feels like a betrayal.

7:57Steve Garrelick is with the GMV Trade Union. He works in transport logistics and the gig economy in all matters related to transportation for the London area, amongst other districts. The GMB union is one of the largest trade unions in the UK. Steve, how have your members been reacting to the news thus far? Well, I think there's consternation, anger, upset and a feeling of betrayal after they've made an investment in being clean. And certainly what we're hearing is a huge amount of upset, question whether people will actually want to even come in to work in the centre of London if they're going to be faced with these charges.

8:36I'd give you an example, even if you were coming in, let's say Camden in London, to the centre and the fare would be, let's say,£12. Who on earth is going to pay then£25.50 because they've got to cover the extra£13.50 of charge? It's inconceivable. And why should that be on the driver to actually cover that cost? because that's what it is at the moment. And that kind of links into my next question. Speaking about the kind of financial difference that this will make, do you think some will reconsider using electric vehicles altogether? Many are already saying that, but why make the investment if you've got to pay the money out anyway?

9:14It's an argument we made over private hire operators and drivers in London not being able to get the exemptions in the first place when charging came in, because ultimately they might as well license outside the area and get all of the cheaper benefits of licensing outside if they still got to pay the fee anyway. So a lot will be deterred from coming into the centre, which means there's problems for those with disability who may not be able to rely on regular transport forms to get them turned from where they need to be. And including the fact that there are many people who are more vulnerable, who may be working unusual hours, who either don't have the accessibility to get into London or out of London, whether they're working as a private hire driver or courier, or whether they're working in one of the key services that help the capital run.

10:03You've touched on this slightly, but have you heard from members who are worried about having to take even fewer journeys because of the cost? I think there's a high probability that they'll just try and stay on the outskirts of London. Why would you want to come in if you've suddenly got to cover this cost yourself? Because you're going to see the likes of operators, some of the big name operators or the app companies subsidising this in any way, shape or form. So this leads a radical rethink about how the charges are accomplished and how we accomplish those for who are working in London on a daily basis to provide transport services.

10:41Beyond drivers, how could this affect the communities they serve? Well, I think there's certainly a cost that then has to be passed on to the consumer, whether you like it or not. Now, it's potentially OK if you're a decorator or you're a small business. There is a possibility you may be able to absorb those costs into what you charge the public for service within London, because we have to remember the centre still is a beyond the living, breathing, working city. It's also home to many, many thousands of Londoners, and they need the regular services that most people would expect on a daily basis, from food deliveries coming in to the need for people to carry out service at their homes, such as plumbers and electricians and handy folk.

11:30There will be, obviously, I think, a further detriment. What we want to see is a clean air city. We're committed to that. But what we also want to see is a living city, a working city. We have to remember that not only is this the capital, but this is a place that people come to do commerce and we get huge levels of tourism and other benefits that could be diminished if we go too far with this. TfL and the Mayor's Office argue that treating all vehicles the same is actually fairer and that the congestion charge is about managing traffic as well as funding public transport. How do you respond to that?

12:04Well, I think nobody disagrees that you have to have reasonable levels of traffic management, but I would argue that maybe the traffic flow that exists at the moment could be improved many ways. And with the advanced modelling that we have, nothing could be that difficult. The allegation that numbers are going to jump up by 2200 is very clear. If you're worried about those individuals coming into London, not those who need to work in London or provide service in London, then charge a more substantive amount. Enough to be prohibitive to stop those people coming into London, because that would be the more logical way to go.

12:44Why would you want to hurt those who are providing service in London, especially those in private hire, as an example, who are used as a cash machine for everyone from the tax man, where tax rules have come in in advance of many other institutions and organizations and workplaces, down to the amount that they have to pay and the restrictions on what vehicles they can have? it seems to be one rule for one group of people and a different rule for others when it comes to some things but in the case of private hire and taxi there seems to be a different application of rules on many occasions and in the case of private hire here it's certainly a major concern that these drivers are basically used as cash machines as we end this series one thing is clear Londoners stepped up Families, drivers and businesses made the switch to electric, believing in a cleaner, fairer future.

13:42But when policies shift without warning, trust breaks down, progress stalls. And those who did the right thing are left asking, was it worth it? If we're serious about net zero, we need consistent, fair policy that supports people on the ground. Thanks for listening to Leading the Charge, and we'll keep you updated on any news about congestion pricing here on The Standard Podcast. Thank you.