New research from car insurance experts Confused.com reveals that nearly one-third (31%) of UK motorists are discouraged from owning an electric vehicle (EV) due to newly proposed taxes set to take effect from 2028. The findings highlight significant barriers to EV adoption, including high costs, insufficient charging infrastructure, and range limitations.
Key Findings on EV Barriers
The study identifies the primary reasons deterring drivers from purchasing EVs: 67% cite high upfront costs, 34% point to a lack of charging points in their area, and 28% express concerns about inadequate range compared to petrol or diesel vehicles. Following the announcement in April of a potential pay-per-mile tax on EVs, only 38% of current EV owners stated they would definitely keep their vehicle once the tax is implemented, while 7% indicated they are unlikely to retain it. Additionally, 5% of EV owners have already switched back to petrol, diesel, or hybrid cars.
Details of the Proposed Tax
Announced in the 2025 Autumn Budget by Chancellor Rachel Reeves, the pay-per-mile tax is scheduled to begin in 2028. It proposes a charge of 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids. For an EV driver covering 10,000 miles annually, this would amount to £300 in tax. Despite this, running an EV remains cost-effective relative to petrol or diesel vehicles, as the per-mile cost is roughly half of what fuel duty costs for traditional cars.
Infrastructure and Consumer Sentiment
Over two-thirds (67%) of drivers find EVs too expensive to buy, while 34% are reluctant to switch due to a lack of charging points. Confused.com’s previous research indicates there are 28,734 council-owned public EV chargers, with 24,687 new ones expected to be installed within two years. However, as of 2025, there was only one council-owned EV charger per 36 EV drivers in the UK, given the 1,042,219 registered electric vehicles. This inconvenience has led 26% of past EV drivers to revert to petrol, diesel, or hybrid cars.
Timeline for Transition
The average timeline for UK drivers considering a switch to EVs has extended to five years, pushing the expected transition year to 2031—just four years before the COP28 deadline requiring all new UK vehicles to be zero-emission by 2035. For 17% of drivers, the ban on new petrol and diesel cars by 2030 would prompt a switch to EVs, while 29% would be swayed by a lower upfront purchase price.
Cost Comparisons and Expert Insights
Despite upfront costs, EVs can be cheaper to run even with the pay-per-mile tax, as electricity is generally less expensive than petrol. With declining wholesale oil costs, petrol prices are expected to rise further. The research shows that 73% of drivers currently use petrol cars, indicating a significant gap to full EV adoption. Nearly half (47%) of drivers say the new road tax has not influenced their decision to switch or not.
To assist drivers, Confused.com has developed an EV Pay-Per-Mile Tax Calculator to help estimate costs under the 2028 changes. Matt Crole-Rees, motor expert at Confused.com, commented: “The government's plan to transition to EVs instead of petrol and diesel cars by 2030 and the hybrid ban in 2035 may feel overwhelming for some motorists as cost, convenience, and range are barriers for drivers switching to EVs. Even more changes are coming in 2028, including the eVED pay-per-mile tax and annual increases. So, it’s important that drivers understand these changes, why they are put in place, and the impact they can have on their spending. A greener and more efficient way of driving is a key priority for the government, and plans are in place to make this change as seamless as possible. It’s important for drivers to understand how the new EV rates and rules apply to specific cars to stay on top of increasing costs. It’s important to remember that these anticipated changes may also change before 2028, so drivers should monitor relevant announcements closely.”
