Pay-Per-Mile Road Pricing UK: What's Confirmed for 2028

Pay per mile road pricing in the UK is no longer just a think-tank idea kicked around at Budget time. It's now a confirmed policy, at least for electric and plug-in hybrid cars, with a start date, a rate and (mostly) a plan for how it'll be checked. If you've heard the term eVED thrown around and wondered whether it applies to your car, or when you'll actually start paying it, this article sets out where things genuinely stand.

It's worth being precise from the off: this isn't a scheme that tracks every car on every road. It's a mileage-based charge that sits alongside existing Vehicle Excise Duty (VED), and for now it only applies to battery electric and plug-in hybrid vehicles.

What pay per mile road pricing actually means for UK drivers

The policy is called Electric Vehicle Excise Duty, or eVED. At the 2025 Budget, the government announced electric vehicle excise duty (eVED), a new tax payable alongside VED from April 2028, with the measure charging 3p per mile for EVs and 1.5p per mile for PHEVs. That's the headline you need to remember: it's an addition to your existing road tax bill, not a replacement for it.

The rates: 3p and 1.5p a mile

Plug-in hybrids get the lower rate for a straightforward reason. The government said this reflects the fact that plug-in hybrids already pay fuel duty on the petrol or diesel they use. A full battery electric car pays the full 3p rate because it isn't contributing anything through fuel duty at the pump.

It sits on top of VED, not instead of it

The official consultation document is clear that this isn't a wholesale replacement of the current system. eVED will not require 'trackers' in cars, nor will the government ask people to interact with a whole new tax system: car drivers will pay for the miles they drive alongside paying their usual road tax (VED). So from April 2028, an EV owner will still renew their standard VED as normal, then settle a separate mileage charge on top.

Why the government says it's doing this

The reasoning is about revenue, not just fairness rhetoric. Fuel duty has long been one of the Treasury's biggest earners from motoring, and it only applies to petrol and diesel. As more drivers switch to electric, that income shrinks. The government's own framing in the consultation document sets out that eVED will be set at half the equivalent fuel duty rate for electric cars, and half again for plug-in hybrids, which is designed to keep EVs cheaper to run overall while still bringing them into the tax base as usage grows.

For context on what petrol and diesel drivers already pay per mile through duty at the pump, fuel duty is charged per litre of fuel used and it is currently set at 52.95p per litre on unleaded petrol and diesel, with value added tax (VAT) charged on top. That's the comparison the government keeps coming back to when it argues eVED still leaves electric motoring cheaper mile for mile.

What you're actually paying now, before eVED starts

None of this changes what's due on your car tax renewal today. Current VED for cars registered from April 2017 onwards works on a two-tier system.

First-year and standard rates

• New cars registered from April 2017 pay a first-year rate based on carbon dioxide emissions, ranging from £10 to £5,690 in 2026/27.
• From the second year, those cars pay a standard rate of £200.
• The most recent reform brought EVs into scope of VED from April 2025, with zero-emission cars beginning to pay a £10 first-year rate and the standard rate thereafter.

The Expensive Car Supplement

If you're buying a pricier EV, there's an extra charge to factor in. Cars costing over £40,000 pay an additional expensive car supplement of £440 for five years after the second year of registration. Electric cars have had a bit of breathing room here, though: the threshold at which the supplement becomes payable has risen to £50,000 for zero-emission cars in 2026/27. Buy a used EV that had a list price above that threshold when new, and the supplement still follows the car, not the current owner.

How your mileage will actually be checked

This was the sticking point in the consultation, and it's the bit most drivers actually want to know. Nobody's fitting a black box to your dashboard. Instead, the system leans on existing infrastructure and self-reporting, with checks and balances built in to catch dishonesty.

Odometer readings and self-reporting

Under the confirmed approach, you'll declare your mileage and pay accordingly, with the DVLA cross-checking against independent readings where they exist. Where the official mileage from the MOT and the user-supplied mileage suggest a mileage may have been materially mis-declared, the government will have evidence of mis-declaration, and appropriate compliance processes will be put in place by DVLA. In plain terms: if what you tell the DVLA doesn't match what a garage records at your MOT, expect a letter.

What else has been confirmed so far

• eVED applies only to fully electric and plug-in hybrid cars for now, not petrol, diesel, vans, HGVs or motorcycles.
• The charge is due to start from April 2028, giving drivers and the leasing industry lead-in time.
• There's no location-based charging and no requirement for an in-car tracker as part of the core scheme.
• MOT centres are expected to play a role in verifying odometer readings, reconciled against what drivers self-declare.

Some of the finer detail, particularly around newer cars that aren't yet old enough for an MOT, was still being refined as the consultation response was published, so it's worth checking official updates nearer the time rather than relying on anything written today as the final word.

What to do before 2028 if you drive, or plan to buy, an EV or PHEV

There's genuinely nothing to action right now. eVED doesn't start until April 2028, and the standard VED and Expensive Car Supplement rules are what matter for your budget this year. That said, a few practical habits are worth building in as you run or shop for an electric or plug-in hybrid car.

• Check the car's tax and MOT position before you buy. Entering a registration number shows you the current MOT history and tax status straight from DVLA records, so you know exactly where a car stands before you commit.
• Get a realistic sense of value. If you're weighing up trading in an EV or PHEV before higher running costs bite in 2028, a free valuation gives you a rough market guide, though it's always indicative and will move with condition, mileage and demand.
• Think about how you'll fund the next car. If a change of vehicle is on the cards, it's worth understanding your finance options in general terms, since eVED and VED costs will factor into total running costs over the life of an agreement.

You can run a free check through our reg lookup tool, and if you're weighing up your next car and how to pay for it, car finance is worth understanding before you commit. For more on running costs and ownership more broadly, our guides cover related topics in plain English. Finance is always subject to status and affordability, and nothing here should be read as advice on which vehicle or funding route suits your circumstances.

The bottom line

Pay per mile road pricing in the UK, in its confirmed form, is a mileage charge for electric and plug-in hybrid cars starting April 2028, set at 3p a mile for EVs and 1.5p a mile for PHEVs, sitting on top of the VED you already pay. It isn't a universal road-pricing scheme for every driver, and it isn't happening this year or next. The sensible approach is to keep an eye on official updates as April 2028 approaches, rather than budgeting today based on numbers that could still be refined before the scheme goes live.

The eVED rate, current VED bands and the Expensive Car Supplement threshold are all figures the government can adjust before April 2028, and fuel duty itself moves at future Budgets too. Check the current position on GOV.UK's vehicle tax pages before making any decisions based on these figures.