Overview
- From April 2028, Electric Vehicle Excise Duty will charge 3p per mile for battery electric cars and 1.5p per mile for plug‑in hybrids, applying to UK‑registered cars only, with vans, motorcycles, buses and HGVs initially excluded.
- Drivers will estimate annual mileage and pay alongside VED, topping up if they exceed it and rolling over any unused amount, with the government stating there will be no location tracking requirements.
- The consultation on final design and exemptions runs to 18 March 2026, and the Treasury says revenue will fund local road maintenance, targeting over £2 billion a year by 2029–30.
- Cost analyses indicate petrol cars average about 17p per mile to run, while home‑charged EVs plus the new levy are estimated at roughly 5p–11p per mile, with typical EV charges cited around £240–£250 a year.
- Industry data show nearly 500,000 EV and hybrid registrations in 2025 (about 26% growth) as grants and the ZEV mandate lifted sales, but AutoTrader reports a wealth divide in EV consideration and Motability data show many without reliable home charging pay higher public‑charging prices, prompting warnings of a potential two‑tier system and a ‘double whammy’ for around 982,000 hybrid drivers.