Under the scheme, vehicles must be either pure electric or ultra low emission and Euro 5-compliant to gain congestion charge exemption.

The ULED provides a single 100 % discount from the Congestion Charge for electric vehicles and ultra low emission cars and vans.

To qualify for the new discount vehicles must be either pure electric or emit 75g/km or less of CO2 and meet the Euro 5 emission standard for air quality.

However, under TfL’s previous announcement, there is a “sunset period” for the GVD scheme in order to recognise that many drivers made the decision to purchase a low-emission car in order to benefit from the existing discount. 

As a result, current owners of cars registered for the GVD will continue to receive a full discount for that vehicle for three years – an increase from the two years proposed in the consultation on the changes. This will mean that such vehicles will continue to receive the GVC until 24th June 2016.

A previously announced increase in the level of penalty charge from £120 to £130 also kicks in today.

Matthew Pencharz, the Mayor of London's advisor on the Environment, said: 'These changes are in line with the Mayor's aim to improve air quality in London by reducing emissions from private vehicles and promoting the further development of low-emission vehicles. 

'We want to encourage the continued development of these technologies, while also protecting the benefits to traffic flow in the centre of London that the charge provides.'