### New Pay-Per-Mile Tax Scheme Set to Impact Millions of UK Drivers The UK government, under Chancellor Rachel Reeves, has announced a controversial new pay-per-mile tax scheme that will significantly affect drivers of electric and hybrid vehicles. Starting in April 2028, electric vehicle (EV) owners will be charged **3p per mile**, while plug-in hybrid vehicle (PHEV) drivers will incur a **1.5p per mile** charge. This initiative aims to compensate for lost fuel duty revenue as more drivers transition to electric vehicles. The changes have sparked widespread concern among motorists, with many fearing they will face a "double tax" on their vehicles, leading to increased running costs and potential fraud as drivers may attempt to manipulate mileage readings to reduce their tax burden [http://www.dailymail.co.uk/news/article-15347377/millions-hybrid-drivers-face-double-tax-rachel-reevess-plans.html][https://www.mirror.co.uk/features/topic-desking/money/huge-number-brit-drivers-set-36343838]. ### Breakdown of the New Tax Structure and Its Implications 1. **Tax Rates and Implementation Timeline** - EV drivers will pay **3p per mile** starting April 2028. - PHEV drivers will incur a **1.5p per mile** charge. - This is in addition to the existing **£195 annual Vehicle Excise Duty (VED)** [https://www.chroniclelive.co.uk/news/uk-news/two-million-uk-drivers-forced-32982283]. 2. **Financial Impact on Drivers** - Average EV drivers could see an increase of **£438** in annual running costs due to the new tax [https://britishbulletin.com/rachel-reeves-new-car-taxes-set-to-impact-thousands-of-drivers-with-438-hike-in-running-costs]. - The average driver could face an additional **£255 annually** due to the mileage charge [https://www.chroniclelive.co.uk/news/uk-news/uk-drivers-warned-new-driveway-32975517]. 3. **Public Reaction and Concerns** - Many drivers are expressing frustration, with some vowing to revert to petrol or diesel vehicles to avoid the new charges [https://www.dailymail.co.uk/money/electriccars/article-15332665/The-EV-tax-backlash-Drivers-vow-return-petrol-tamper-odometers-Rachel-Reeves-brings-pay-mile-levy-electric-cars.html]. - Concerns have been raised about potential mileage fraud, as drivers may resort to tampering with odometers to evade taxes [https://www.birminghammail.co.uk/motoring/motoring-news/drivers-planning-resort-drastic-lengths-32985054]. ### Supporting Data and Evidence of Financial Impact - **Projected Costs for Drivers**: - **EV Drivers**: Estimated to pay **£243 to £450** more annually due to the new tax structure [https://www.whichev.net/2025/11/28/budgets-new-pay-per-mile-tax-could-add-243-a-year-to-electric-car-running-costs-moneysupermarket-warns]. - **PHEV Drivers**: Facing a **1.5p per mile** charge, which could lead to significant annual costs depending on mileage [https://www.chroniclelive.co.uk/news/uk-news/drivers-over-70-set-hit-32960862]. - **Government's Rationale**: - The government argues that the new tax is a necessary measure to ensure fairness among all drivers and to recover lost revenue from fuel duties as the shift to electric vehicles continues [https://www.cityam.com/autumn-budget-reeves-hits-electric-vehicles-with-pay-per-mile-tax]. ### Conclusion: A Shift in the Landscape of Vehicle Taxation The introduction of the pay-per-mile tax marks a significant shift in the UK's approach to vehicle taxation, particularly for electric and hybrid vehicles. 1. **Increased Costs**: Drivers will face substantial increases in their annual vehicle costs, with estimates ranging from **£243 to £450** more per year. 2. **Public Backlash**: The announcement has led to widespread dissatisfaction among drivers, with fears of a "double tax" and potential fraud. 3. **Future Implications**: The government’s strategy aims to balance revenue losses from traditional fuel taxes, but it risks deterring the adoption of electric vehicles and could lead to a resurgence in petrol and diesel vehicle usage. In summary, while the government seeks to adapt to changing vehicle ownership trends, the financial burden placed on drivers raises questions about the sustainability and fairness of such a tax system [https://www.independent.co.uk/cars/electric-vehicles/electric-vehicle-pay-per-mile-rachel-reeves-budget-2025-b2869615.html].