Overview
- Financial Secretary Lord Livermore defended the policy in the House of Lords, confirming a new levy on electric vehicles from 2028.
- Reported rates are 3p per mile for battery EVs and 1.5p per mile for plug‑in hybrids, with practical mileage‑monitoring details yet to be set.
- Analysis from ALA Insurance estimates the average EV driver would pay about £267 a year and that battery EVs could yield roughly £466 million annually.
- LCP Delta warns the levy could slow EV adoption and estimates around £0.82 billion a year in receipts by 2028 based on projected fleet size and mileage.
- The Expensive Car Supplement threshold for zero‑emission cars rises from £40,000 to £50,000 on April 1, 2026, after DVLA data showed a 42% increase to 426,758 vehicles in the charge; most cars registered from April 1, 2025 will only incur one year of the supplement before the change takes effect.