Labour has been issued a warning over introducing new pay-per-mile car taxes for road users from 2028. Labour Party Chancellor Rachel Reeves announced that electric and plug-in hybrid drivers will soon pay road tax based on the miles they drive, as the government looks to recover lost fuel duty revenue.
New Charges for EV and Plug-In Hybrid Drivers
EV drivers are expected to pay 3p per mile, while plug-in hybrid owners will be charged 1.5p per mile. The consultation on the new system has now closed, and the finer details will be revealed in due course ahead of its planned rollout in Spring 2028.
According to Carwow, if you drive an electric car, you will be charged 3 pence per mile. For example, covering 8,000 miles per year would result in a charge of £240. Plug-in hybrid drivers will pay £120 per year for the same distance under the new scheme, so keeping the battery topped up will be key to getting the best value from your car.
Petition Against Pay-Per-Mile Charging
A petition urges: "Do not introduce pay-per-mile road charging for UK drivers." It adds: "Many people depend on driving for work, education, and family life, with no viable public transport. We think a pay-per-mile tax would unfairly hit many families, shift workers and parents supporting children's sports.
"We believe pay-per-mile charging would punish responsible drivers who already pay road tax, fuel duty, and insurance. It risks isolating rural communities and damaging small businesses that rely on transport. Families, carers, and key workers would face extra costs simply to get to work or support their children. The Government should protect freedom of movement, not add more financial pressure to those with no transport alternatives."
Implementation Details
Carwow adds: "Pay-per-mile is still in a consultation period at the moment, so the government is talking with various agencies and liaising with the public to work out the best way of implementing it – however there are no plans to monitor people's mileage using a black box or other tracking devices as this would be an invasion of privacy."
