Overview
- From April 2028, electric cars will pay 3p per mile and plug‑in hybrids 1.5p under a new electric Vehicle Excise Duty, paid upfront on estimated mileage and settled at the MOT.
- Transport for London removes electric‑vehicle exemptions over the festive period, with the standard daily charge rising to £18 from January 2 and a 25% discount available via Auto Pay.
- Treasury projections suggest the scheme will raise roughly £1.4 billion a year by 2029–30 as HMRC data show fuel‑duty receipts dipped to £16.4 billion between April and October, £43 million lower year on year.
- Illustrative costs for EV drivers include about £150 for 5,000 miles a year and £255 for an average 8,500 miles, with refunds or top‑ups applied after annual mileage checks.
- Industry figures warn the new levy could slow EV uptake and say insurers may scrutinize annual mileage declarations more closely as mileage becomes a priced factor.