The UK Government has confirmed that drivers of electric and plug-in hybrid cars will face a new pay-per-mile charge from April 2028. Electric vehicle owners will pay 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile, both significantly lower than the equivalent 6p per mile that petrol and diesel drivers pay in fuel duty.
How the eVED system will work
The new system, called eVED, will calculate charges based on driver mileage estimates, with an upfront fee. Drivers can spread the cost through monthly payments, similar to regular Vehicle Excise Duty (VED). At the end of the year, motorists must submit their actual mileage reading, which will be verified by the car's annual MOT or, for new cars, around the second or third registration anniversary. Any outstanding balance can be paid or spread over the following 12 months.
Options for new electric cars
For new electric cars, buyers can include eVED mileage in the vehicle's on-the-road price or arrange payment independently. However, since taxing based on time and location has been ruled out, EV owners will also face eVED charges when driving abroad.
Government stance and future investigations
While not current policy, the Government said it 'welcomes' an investigation into on-board telematics data, which would relay mileage in real time. This could pave the way for more dynamic charging in the future.
Industry reaction
Vicky Edmonds from the Electric Vehicle Association England criticised the move, stating: 'The Government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need. At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved.'
