Electric car drivers would pay 3p for every mile from April 2028 under a government plan reaffirmed by the Treasury. Plug-in hybrid drivers would pay 1.5p per mile.
The Treasury set out the details in its response to a public consultation, which drew concerns from more than 5,000 stakeholders. The charge would come on top of the £200 annual standard vehicle excise duty and is intended to reflect the fuel duty paid by petrol and diesel drivers.
Drivers would initially pay based on predicted annual mileage, checked against MOT records. They could instead opt to use vehicle connectivity technology to provide GPS-tracked mileage, avoiding manual estimates. The Treasury also said the per-mile rates would rise each year with Consumer Prices Index inflation from 2029-30.
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