Opinion

Pay-per-mile for EVs exposes the costly folly of net zero motoring

The government's confirmation of a 3p-per-mile tax on electric cars from 2028, including mileage driven abroad, reveals the punitive reality behind the green transition. Drivers will foot the bill for ideological targets that ignore infrastructure gaps and consumer choice.
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AI-generated image: Pay-per-mile for EVs exposes the costly folly of net zero motoring
AI-generated image for illustrative purposes.
Intelligent summary
  • From 2028 UK electric car owners will pay 3p per mile under the new eVED, with plug-in hybrids at 1.5p, rising with inflation.
  • The charge covers overseas mileage by UK-registered vehicles and uses odometer estimates reconciled at MOT or year-end without tracking devices.
  • Projected to raise £1.2 billion annually, the scheme highlights the revenue gap from declining fuel duty and the costs of the net zero transition.

"Another layer of taxation." That blunt verdict, buried in the official response to the consultation published on 13 July 2026, captures the essence of what ministers have just confirmed. From April 2028, owners of fully electric cars will hand over 3 pence for every mile they drive under the new Electric Vehicle Excise Duty. Plug-in hybrids face 1.5p. The rates will climb with inflation thereafter. And yes, it applies even to miles clocked on foreign roads by UK-registered vehicles.

This is no minor administrative tweak. As carwow reported, the measure is projected to pull in around £1.2 billion a year. The Treasury's stated aim is to plug the hole left by vanishing fuel duty as petrol and diesel cars fade from the roads. Yet the timing and design betray something deeper: a grudging admission that the grand electric transition was sold on false premises. Promises of cheaper running costs, effortless green virtue and untouched road networks have quietly dissolved.

The intrusive mechanics of collection

Motorists must now estimate their annual mileage, pay upfront or in instalments alongside the standard vehicle excise duty, then square accounts at year-end or during MOT tests using odometer readings. No black boxes, ministers insist. No location tracking. That is presented as a concession to privacy. In truth it feels like the bare minimum required to avoid outright revolt. The inclusion of overseas driving stands out as particularly petty. Fuel duty never chased Britons around the Continent in quite this way. Here the state reaches across borders to extract its cut from private journeys, all in the name of road maintenance back home.

Contrast this with the earlier assurances. EVs escaped fuel duty for years while enjoying lower vehicle tax. From April 2025 they began paying standard VED. Now comes this supplementary charge, set at roughly half the equivalent fuel duty burden borne by petrol drivers. An owner covering 8,000 miles a year will face about £240 annually. It adds up. Businesses running fleets will feel it sooner and harder. The consultation response, as GOV.UK made clear, applies the duty to new and existing vehicles alike, hydrogen fuel-cell models and range-extenders included. The net is wide.

Ideology meets arithmetic

Look closer and the contradictions mount. Successive governments have poured billions into subsidies, charging infrastructure and mandates to accelerate the shift away from internal combustion. A £3.6 billion package to support EV uptake is still touted. Yet the moment the revenue forecasts turn sour, the same motorists who answered the call are presented with a fresh bill. The infrastructure, meanwhile, remains patchy outside major cities. Range anxiety persists for many. Choice has narrowed rather than expanded. This is not the seamless, affordable mobility revolution once depicted.

The deeper problem lies in the ideological fixation. Net zero targets have driven policy with little regard for practical consequences or individual liberty. Private initiative in transport, the sort that once produced incremental improvements through market signals, has been subordinated to central edicts and fiscal penalties. Drivers are treated less as citizens exercising sensible choices than as units in an emissions ledger that must be balanced at all costs. The pay-per-mile scheme, with its estimates, reconciliations and inflation-linked ratchet, simply formalises that control.