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UK Sets 2028 Pay‑Per‑Mile EV Tax as Ministers Pair Levy With Grants and Charging Fixes

Analysts warn drivers who rely on public chargers could face higher costs unless the policy narrows the gap with home charging.

Overview

  • Headline rates are confirmed at 3p per mile for battery EVs and 1.5p for plug‑in hybrids, with the scheme scheduled to start in April 2028.
  • Ministers plan to ease home charging by mandating chargepoints in new covered car parks and consulting on removing planning barriers for cross‑pavement gullies, with claims that domestic rates could deliver running costs near 2p per mile.
  • The Electric Car Grant has been expanded with more eligible models and the government has pledged an extra £200 million for public chargepoints, building on earlier funding.
  • Modelling highlights potential cost pressures for public‑charging users, including Electrifying.com’s finding that some could be about £438 a year worse off than comparable petrol drivers at typical 60p/kWh tariffs, while OBR estimates an average EV driver paying roughly £255–£279 a year under eVED.
  • Industry and policy voices flag design risks such as perceived 'double taxation' for plug‑in hybrids, possible knock‑on effects on petrol and diesel prices under the ZEV mandate, and unresolved administration details involving DVLA mileage reporting and annual top‑ups or roll‑overs.