The Electric Car Per-Mile Charge (eVED): 3p a mile from 2028

The per-mile charge on electric cars: ~3p a mile from April 2028

Petrol drivers pay ~£600 a year in fuel duty; EV drivers pay none — and as the fleet electrifies, £24bn a year of fuel duty evaporates. The answer legislated in the Taxation (Energy and Vehicles) Bill: from April 2028, EVs pay roughly 3p per mile, alongside vehicle excise duty.

Status: Legislating — from April 2028 Region: UK-wide Party: Labour (in government) From: Autumn Budget, November 2025

How it works

From April 2028, battery-electric cars pay an electric Vehicle Excise Duty (eVED) of about 3p per mile (plug-in hybrids ~1.5p), on top of standard road tax. Mileage is self-reported annually — checked against MOT odometer readings — with the option to pay estimated mileage up front and reconcile later. A 8,000-mile-a-year EV driver pays about £240; the same miles in a petrol car cost roughly £600 in fuel duty, so EVs remain substantially cheaper per mile.

The case for

Fuel duty raises ~£24bn a year and is structurally dying as the fleet electrifies — some replacement is arithmetically inevitable, whoever governs.
Per-mile beats the alternatives (higher electricity taxes would hit non-drivers; flat fees would punish low-mileage drivers).
EVs keep a meaningful running-cost advantage (~3p vs ~7.5p/mile of fuel duty+VAT).

The case against

It taxes exactly the transition the government subsidises — mixed signals for hesitant switchers, says the motor industry.
Self-reported mileage invites disputes and evasion; critics also see the thin end of full road pricing, with its privacy questions.
Rural drivers — with the longest, least-substitutable miles — pay most.

Where the parties stand

Labour legislated it. Reform's scrap-net-zero platform and the Conservatives' anti-carbon-tax instincts point toward repeal pledges, though neither has formalised one. The deeper question — how to fund roads when petrol dies — awaits whoever wins.

Sources & further reading

HM Treasury — Autumn Budget 2025 — the eVED announcement.
Office for Budget Responsibility — fuel duty erosion forecasts.
SMMT — industry response on EV transition effects.

Figures are from public material and may change. Not financial, legal or tax advice.

Frequently asked questions

How much is the EV per-mile charge?

About 3p per mile for battery-electric cars and 1.5p for plug-in hybrids from April 2028, self-reported alongside your MOT and paid with road tax. An 8,000-mile year costs roughly £240.

Why are electric cars being taxed per mile?

Fuel duty raises about £24bn a year and disappears as the fleet electrifies. A per-mile charge replaces part of it while keeping EVs meaningfully cheaper per mile than petrol (~3p vs ~7.5p of duty+VAT).

Will the per-mile charge apply to petrol cars?

No — petrol and diesel drivers already pay per mile through fuel duty. The eVED covers EVs and plug-in hybrids only. Critics see it as a step toward road pricing for everyone; the government denies that.

Would any party scrap the EV charge?

Reform UK's scrap-net-zero platform and the Conservatives' opposition to new motoring taxes point that way, but neither has made a formal repeal pledge yet. The underlying problem — replacing dying fuel duty — confronts whoever governs.