Proposal C: Changes to the Residents' Discount for new applicants

Currently, residents of the CCZ receive a 90% discount because of their reduced ability to avoid the charge if they drive during charging hours. A relatively small charge applies because these vehicles contribute to traffic and congestion and to provide an incentive for residents to use more sustainable modes.

In the context of the proposed changes to the CVD it is timely to consider potential changes to the Residents’ Discount. As well as aligning with MTS policies on reducing private car use in favour of active, efficient and sustainable modes, our proposal reflects the London Plan approach to promoting car-free residential development in central London.

In order to support the proposed changes to the CVD and the greater availability and uptake of EVs compared to 2003 when the discount was first introduced, we are proposing that eligibility for the 90% Residents’ Discount will be limited to only electric vehicles, starting on 1 March 2027. It is considered appropriate to incentivise those residents who choose to own and operate a vehicle in the CCZ to do so in the cleanest available vehicles.

This would apply to new applicants only. To mitigate the impact on existing residents who may be reliant on their vehicle, no changes are proposed to those living in the zone who are already registered for the Residents’ Discount, or who register by 1 March 2027 when proposed changes are due to come in to effect, provided that the discount’s other eligibility criteria continue to be met and timely renewals are made.

We propose:

• For new applicants, the 90% Residents’ Discount would only apply to electric vehicles
  
• Residents who are already registered would retain the existing 90% discount, including for any new or replacement vehicles, if they continue to meet the discount’s other eligibility criteria and renew their registration each year

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