The UK’s Autumn Budget 2025 introduced a new 3 pence per mile (3p/mile) road charge for fully electric vehicles (EVs) and 1.5 pence per mile (1.5p/mile) for plug-in hybrids (PHEVs). This tax, known officially as the Electric Vehicle Excise Duty (EVED), will take effect from April 2028.
Key Details of the Pence Per Mile Charge Vehicle Types and Rates:
Fully Electric Vehicles (EVs): 3 pence per mile.
Plug-in Hybrids (PHEVs): 1.5 pence per mile.
Self-charging hybrids (those that cannot be plugged in) are not affected and will continue to pay fuel duty at the pump.
Implementation Date: The charge will be implemented in April 2028, following a public consultation period that closes in March 2026.
Annual Uprating: The rates will increase annually in line with the CPI measure of inflation from 2029-30 onwards.
Mechanism: The charge will be integrated into the existing Vehicle Excise Duty (VED) system administered by the DVLA. Drivers are expected to estimate their annual mileage at the start of the year and pay based on this, with an annual mileage check during the MOT test to reconcile the estimated and actual mileage.
Total Cost: This new charge is in addition to the standard annual VED (which EVs started paying from April 2025). For an average EV driver covering approximately 10,000 miles annually, the pay-per-mile charge is expected to be around £300 a year.
The government’s goal is to ensure all drivers contribute to road maintenance as the switch from petrol and diesel cars (which pay fuel duty) to electric vehicles accelerates, addressing a potential revenue shortfall for the Treasury.
