Older drivers are facing a fresh £50-per-year car tax charge as a major new rule is scheduled to hit UK roads. Electric car owners will need to pay 3p per mile to get behind the wheel from 2028 under Labour’s new electric Vehicle Excise Duty (eVED) fee.
New pay-per-mile fee from April 2028
The new pay-per-mile fee will hit every electric car owner from April 2028 in a bid to claw back lost fuel duty revenue as more drivers switch to EVs. The fee is likely to disproportionately affect those who rack up the mileage, with commuters travelling over 10,000 miles per year most affected.
However, pensioners will also feel the sting, with over-70s holding the keys to electric models also set to be slapped with price rises.
Costs for older motorists
According to Taking Care Personal Alarms, the average annual mileage of drivers above the age of 70 is 1,665 miles. A quick calculation shows that motorists travelling this distance every year would need to pay £49.95 in eVED fees.
It doesn’t end there, with plug-in hybrid owners set to pay 1.5p per mile under the new changes. Over the course of 1,665 miles, older motorists behind the wheel of hybrid models will expect to pay an additional £24.98 per annum.
How the tax will work
Age UK previously explained: “From 2028, EV owners will pay a 3p per mile surcharge on their Vehicle Excise Duty (VED), which brings another cost into the equation. This government tax is designed to increase revenue lost to fuel duty.”
The new eVED charges are set to be paid on top of existing Vehicle Excise Duty fees, although the fees are still expected to be lower than fuel duty charges paid by petrol and diesel owners.
Motorists will have to pay eVED fees upfront, with mileage then used to determine whether road users have accurately represented their annual road use.
HM Revenue and Customs explained: “VED is administered by Driver and Vehicle Licensing Agency (DVLA). They will also administer eVED.
“Motorists will pay an upfront charge based on their estimate or spread their payment across the year, with the year-end mileage reading triggering a reconciliation. Mileage data from cars is currently collected at annual MOTs and is available to view for most cars on GOV.UK.”
