Electric vehicle owners are facing a significant financial blow as a new pay-per-mile tax is set to triple the cost for certain drivers, pushing the total expense to 11p per mile.
The Real Cost of Charging Your EV
Consumer champion Which? has conducted a thorough analysis of electric vehicle charging costs across the United Kingdom. Their research reveals that charging an EV at home typically costs around 8p per mile. This baseline cost provides context for the additional financial burden being imposed on motorists.
On top of this existing expense, the Labour government is introducing a new 3p per mile surcharge specifically for electric vehicles. When combined with the standard home charging cost, this means some road users will be paying a total of 11p for every mile they drive.
Political Backlash and Industry Concerns
The new tax has sparked immediate controversy and political confrontation. Conservative Party shadow transport secretary Richard Holden launched a fierce criticism of the policy, stating: "Britain cannot afford a spineless government that, rather than standing up to its own backbenchers to stop the exponential growth in welfare payments, instead treats motorists as a cash machine."
He further accused the government of using drivers to "plug the holes Rachel Reeves and Sir Keir Starmer are creating," adding that "families are not an ATM for Rachel Reeves, yet under Labour, everyone who relies on a vehicle is being lined up for another shakedown."
The AA president, Edmund King, expressed serious concerns about how this new tax might affect the country's transition to electric vehicles. "Whilst we acknowledge the Treasury is losing fuel duty revenue as drivers go electric, the government has to tread carefully unless their actions slow down the transition to EVs," he warned.
King highlighted the concerning reality that "the ZEV mandate for 28 per cent of new car sales to be zero-emission this year will not be met, as sales are running at just 22 per cent." He emphasised the need to "see the detail of this proposal to ascertain whether these new taxes will be equitable, or a poll tax on wheels."
Government Defence and Future Support
In response to the growing controversy, a government spokesperson defended the policy by emphasising the need for a fair system. They explained in a statement: "Fuel duty covers petrol and diesel, but there's no equivalent for electric vehicles. We want a fairer system for all drivers, whilst backing the transition to electric vehicles."
The government pointed to their substantial investment in supporting the EV transition, noting they have "invested £4bn in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle."
The statement concluded by acknowledging the balance required: "Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable."
Meanwhile, Which? added another layer of concern for EV owners, reminding consumers that "the energy price cap rose by 2% in October, so the cost of charging at home also increases" - further compounding the financial pressure on those who have made the switch to electric vehicles.
