The government has confirmed new mileage-based rates for electric and plug-in hybrid vehicles as fuel-duty income continues to fall. Drivers could pay around £210 a year once the system begins.
The government has confirmed a new per-mile charge for electric and plug-in hybrid vehicles from April 2028, introducing one of the biggest changes to road taxation in years and immediately sparked debate among drivers. Fully electric cars will be charged 3p per mile, while plug-in hybrids will face a 1.5p per mile rate.
Online reaction has been mixed, with many users expressing concern about how the charge could affect everyday travel. One highly retweeted post on X raised concerns about the impact on drivers who frequently travel longer distances, while others questioned how the government plans to monitor mileage and ensure accuracy once the system is in place.
An user on X, Sasha Yanshin post that:
Going to visit your family who live 3 hours away will now cost you £10 extra every time.
According to the Budget 2025 document, fuel duty raises around £25 billion a year. As petrol and diesel sales continue to decline, the Treasury plans to use mileage-based charging as a long-term way to support public spending. For an electric car driver travelling roughly 7,000 miles a year, the new rate would add about £210 to annual running costs.
Industry groups have questioned the timing. Chief Executive of the Society of Motor Manufacturers and Traders Mike Hawes said the sector needs long-term clarity, adding that “unexpected changes risk undermining consumer confidence at a critical point in the transition to electric mobility.”
Some experts also warn the new cost could influence how consumers view electric cars. International Business Correspondent Theo Leggett told the BBC that the charge “will make running an electric car more expensive at a moment when the government is still trying to encourage people to buy them.” He said the change reflects the challenge of supporting the transition to greener transport while maintaining revenue.
Online reaction has been mixed, with many users expressing concern about how the charge could affect everyday travel. One highly retweeted post on X raised concerns about the impact on drivers who frequently travel longer distances, while others questioned how the government plans to monitor mileage and ensure accuracy once the system is in place.
The Treasury says more details on how the charge will work will be released in 2026. For now, officials maintain that the change is part of preparing the tax system for a future where most cars on the road produce no emissions.