Electric vehicle owners who cover 10,000 miles annually could face an extra £300 charge under new government plans set to begin in 2028.
Budget Announcement and Start Date
Chancellor Rachel Reeves will announce the new 3p pay-per-mile car tax in an upcoming Budget. The scheme won't take effect immediately but is scheduled to begin at the start of the new tax year on 6 April 2028.
Financial experts predict the average motorist will pay approximately £250 per year under the new system, with higher-mileage drivers facing bills of £300 or more.
Expert Advice for Drivers
Chris Ball, CEO of financial advisory firm Hoxton Wealth, urged drivers to prepare for the changes. "Drivers should start factoring this into their motoring budgets," he said.
Ball recommended several strategies for managing the additional cost:
- Setting aside money each month
- Regularly monitoring mileage
- Reviewing total vehicle costs regularly
He noted that while EVs still offer long-term savings, "it is worth adjusting expectations and ensuring motoring costs are built into financial planning going forward."
Industry Concerns and Public Reaction
James Court, head of policy at Octopus Electric Vehicles, expressed concern about the timing. "I think it's far too early in the transition," he warned.
Court pointed to international examples, including New Zealand, where he said "EV demand has fallen off a cliff" following similar early taxation measures.
The announcement has sparked strong reactions from motorists. One driver commented: "Well that will be the end of the weekend trips to the countryside and a pub lunch. So much for small businesses trying to make a living."
Another recent EV adopter expressed frustration: "Go electric they said, be kind to the environment they shouted. Think of the future we were told. So I have. I take delivery of my new electric vehicle in two weeks time."
Many are concerned about the impact on lower-income workers, with one asking: "What about the people who are only just keeping their head above water financially? These are the people who it will affect most."
