The Severn tolls will be abolished by the end of next year, the Secretary of State for Wales Alun Cairns has announced.
Motorists travelling from England into Wales currently pay £6.70 for cars and £13.40 for vans.
It is estimated this announcement would boost the economy of South Wales by around £100 million a year and the average motorist could save more than £1,400 per year.
The decision to abolish the Severn tolls next year sends a powerful message to businesses, commuters and tourists alike that the UK Government is committed to strengthening the Welsh economy.
Tens of millions of motorists a year will benefit from the end of tolls on the Severn bridges, saving them money and cutting journey times. People who use the crossing every day will save a minimum of £115 a month.
First Minister, Carwyn Jones said: "This is nothing but a desperate attempt by Alun Cairns to distract from yesterday's u-turn on electrification to Swansea."