The UK government has launched a major new push to convince motorists to switch to electric vehicles, highlighting annual savings of around £1,400 and a grant worth up to £3,750. However, the campaign launch comes with a significant caveat: a new road tax for electric and plug-in hybrid cars is scheduled to begin in April 2028.
The Savings Incentive and Government Campaign
Ministers are urging Brits that now is the ideal time to make the switch to electric. The key incentives being promoted are substantial financial benefits. According to the government's new "Get that electric feeling" campaign, running costs for an electric vehicle (EV) can be £1,400 cheaper per year compared to petrol or diesel equivalents.
Furthermore, the existing Electric Car Grant provides a discount of up to £3,750 on the purchase price of a new EV. The government states that over 50,000 drivers have already utilised this grant to transition to electric motoring.
Aviation, Maritime and Decarbonisation Minister, Keir Mather, said: "Our campaign is here to show millions of Brits the benefits of making the switch, which could save their family budget thousands. With over 87,000 public chargers across the UK and thousands more on the way, going electric has never been easier."
The Upcoming Tax Change for Electric Vehicles
Despite the current push, drivers are being reminded of a significant policy shift announced in the November Budget. Starting from April 2028, electric car owners will no longer be exempt from road charging.
The new system will introduce a per-mile fee:
- Fully electric vehicles will pay 3p per mile.
- Plug-in hybrid vehicles will pay 1.5p per mile.
These initial rates will then increase annually in line with inflation, marking the end of the tax-free road use for zero-emission vehicles.
Falling Prices in the Used EV Market
Coinciding with the government campaign is positive news for the second-hand electric vehicle market. Analysis from AA Cars reveals that prices for the most in-demand used EVs and hybrids have fallen for the fourth consecutive quarter.
The latest AA Cars Used Car Index shows the average price of the top 20 most searched-for electric and hybrid models dropped by 1.5% in the final three months of 2025, from £17,085 to £16,826. This trend makes accessing electric technology more affordable for a broader range of buyers.
The government's message is clear: significant savings and purchase grants are available immediately for those switching to electric, supported by a rapidly expanding public charging network. However, the long-term cost calculation must now factor in the incoming per-mile road tax, set to begin in just over two years' time.
