The Labour government has confirmed that a new pay-per-mile scheme for electric vehicles will be introduced in April 2028, with drivers facing 4G/5G tracking to monitor their mileage. Chancellor Rachel Reeves, who masterminded the plan, says the new eVED system will calculate charges based on driver mileage estimates, with an upfront fee paid on that figure. Drivers can also spread costs through monthly payments, similar to regular Vehicle Excise Duty (VED).
How the Scheme Works
Under the new system, electric car owners will be required to pay 3p per mile, while plug-in hybrid owners will pay a lower rate of 1.5p per mile. The government states that drivers can opt in to automatic mileage updates using their car's in-built 4G/5G connection to provide accurate readings to the DVLA. This follows a lengthy consultation period that ended earlier this year.
Criticism from Industry Experts
Vicky Edmonds from the Electric Vehicle Association England expressed concerns, stating that the move 'still does not work for drivers.' She added: '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.'
Consultation Feedback
The government acknowledged key issues raised during the consultation, including that eVED could increase the overall tax burden on EV and PHEV drivers, weaken incentives to switch to electric vehicles, and create administrative complexity for motorists, businesses, fleets, leasing companies, and MOT garages. Respondents also raised concerns about fraud and odometer tampering, the fairness of charging for non-UK or private-road mileage, the treatment of PHEVs, high-mileage users and vulnerable groups, and the need for proportionate penalties, appeals, and dispute processes.
Government's Position
Despite the criticisms, the government remains committed to introducing eVED from April 2028. A spokesperson said: 'As the transition to electric vehicles accelerates, it is important that the motoring tax system remains sustainable and that all motorists make an appropriate contribution for the miles they drive.' The new tax is expected to affect thousands of EV drivers across the UK, with an estimated annual charge of £240 for those driving 8,000 miles.
