The Treasury has reaffirmed plans to charge electric car drivers by the mile from April 2028. The proposed rate is 3p per mile for fully electric cars and 1.5p for plug-in hybrids.
In its response to a public consultation, the Treasury said drivers would pay based on predicted annual mileage, checked against MOT records. They could instead opt to use vehicle connectivity technology to supply GPS-tracked mileage, removing the need to estimate their journeys manually.
The charge would be added to the £200 annual standard vehicle excise duty. The Treasury says it is intended to reflect the fuel duty paid by petrol and diesel drivers. The mileage rates are set to rise each year with Consumer Prices Index inflation from 2029–30.
More than 5,000 stakeholders raised concerns during the consultation on the scheme, which Chancellor Rachel Reeves announced in the Autumn Budget.
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