Overview
- From April 2028, battery EVs will be charged 3p per mile and plug‑in hybrids 1.5p, with rates set to rise each year in line with inflation under the Electric Vehicle Excise Duty.
- Drivers will estimate mileage upfront and reconcile at year‑end against odometer readings, with extra checks planned for newer cars and potential higher future rates for inaccurate declarations.
- Government papers acknowledge a fraud risk from odometer tampering, citing signs in roughly 2.3% of vehicles, and pledge legislative and technical steps to curb “clocking.”
- The OBR warns the levy will lower EV demand and future sales, while the Treasury points to extended grants and charger funding intended to offset the impact.
- New analysis highlights uneven costs: EV owners relying on public chargers could face higher annual running costs than efficient petrol cars, while home and off‑peak charging remains significantly cheaper.