Overview
- From April 2028, battery electric cars will be charged 3p per mile and plug‑in hybrids 1.5p per mile under the government’s new eVED scheme, which the Treasury projects will raise about £1.1 billion a year.
- The Electric Car Scheme’s analysis finds the South West facing the highest average annual bill at £110.25, followed by the East Midlands at £105.09, while London averages £33.09.
- People in smaller rural towns and villages near cities would pay an average of £156.51 a year, compared with £76.02 for drivers in cities and larger towns.
- The government says the levy ensures EV owners contribute to road funding as fuel duty receipts fall, noting petrol drivers currently pay about £480 a year on average and stating EVs will still pay roughly half the duty of petrol cars.
- The Office for Budget Responsibility estimates the charge could reduce EV sales by around 440,000 over five years, partly offset by supportive measures including a £1.3 billion boost to the Electric Car Grant worth up to £3,750 per vehicle.