Tolls on the Severn Crossings will be abolished on 17 December 2018.
The Government say this will generate annual savings for regular motorists of more than £1,000 per year and boost the Welsh economy by an estimated £100m a year.
A driver of an average-sized car is currently paying £5.60 for each crossing into Wales.
Secretary of State for Transport Chris Grayling said:
“Removing the tolls from the Severn bridges will help transform the economy in South Wales and the South West, putting over £1,000 a year back in the pockets of hard-working families.
“Abolishing these tolls will also cut costs for businesses on both sides of the river, giving them a huge boost to help created new opportunities and new potential for growth.”
Secretary of State for Wales Alun Cairns said:
“Today marks an important leap forward in Wales’ economic potential, increasing our appeal to external investors but also ensuring businesses, commuters and tourists on both sides of the border are no longer hampered by a fee restricting them from carrying out their everyday lives."