Electric Vehicle Excise Duty
21st January 2026
The 2025 Autumn Budget brought significant changes for electric vehicle owners from April 2028.
From April 2028 electric car drivers will pay a road charge of 3p per mile, while plug-in-hybrid drivers will pay 1.5p per mile, with the rates going up each year with inflation.
The new rate for electric vehicle owners is about half the fuel rate paid by drivers of petrol cars, according to the government’s independent forecaster.
The Chancellor also committed to extending the 5p cut in fuel duty until September next year, after which it is set to increase annually by RPI measure of inflation.
How will pay-per-mile work?
Drivers will pay the charge based on how many miles they drive from April 2028.
Drivers will have their mileage checked annually, typically during their MOT as is already the case or for new cars around their first and second registration anniversary.
Payment will be integrated into the existing Vehicle Excise Duty system that is administrated by the DVLA.
Disclaimer - All information in this post was correct at time of writing.
