The Government has confirmed a major shake-up in how drivers are taxed, introducing a new charge specifically for owners of electric vehicles (EVs).
How the New Pay-Per-Mile Tax Will Work
Under the new system, which is not due to be implemented until spring 2028, EV owners will be charged based on the distance they travel. The rate has been set at 3p per mile.
This means a motorist covering the UK average of 8,500 miles annually will face a yearly bill of £255. However, the charge will also impact those who use their cars less frequently. For example, a driver covering just 5,000 miles a year will be charged £150.
At the opposite end of the scale, drivers with long daily commutes who rely heavily on their cars will face significantly steeper charges under this new pay-per-mile tax model.
Criticism and the Reason for the Change
The announcement has already drawn criticism from some quarters. Critics argue that the new electric vehicle tax will unfairly penalise those who have no alternative to long car journeys, such as some residents in rural areas.
The move is seen as a direct response to falling revenues from fuel duty, as more Britons make the switch away from petrol and diesel cars. It represents the latest in a series of fiscal measures aimed at ensuring EV drivers contribute to road maintenance.
Expert Advice for EV Drivers
Despite the new charge, motoring experts point out that savings can still be made by switching to electric. Rhydian Jones, a motoring expert at Confused.com car insurance, commented on the shift.
"While EVs will now be treated more like petrol and diesel vehicles when it comes to congestion charging, there are still meaningful savings to be made when making the green transition, including lower charging costs and reduced maintenance," said Jones.
He also offered practical advice for current and future EV owners: "For those who are starting to drive electric, being prepared when it comes to charging is essential."
The confirmation of this new road tax structure marks a pivotal moment in the UK's transition to greener transport, signalling the end of the complete exemption from duty that early EV adopters have enjoyed.