New Mileage Charges Set to Increase Annual Costs for Electric Car Owners

Electric vehicle owners in the UK are set to face higher annual running costs after the latest Budget confirmed new mileage-based levies. The government has outlined a plan that will introduce charges for EV use from 2028, marking a major shift in how electric transport is taxed. For many drivers, the additional cost could reach around £250 a year depending on mileage and vehicle type.

The new system will replace the fuel duty traditionally paid by petrol and diesel drivers, addressing the shortfall caused by the growing shift toward electric motoring. Under the plan, fully electric cars will be charged a set fee for every mile driven, with plug-in hybrids charged at a lower rate. The move is intended to bring road taxation in line with usage rather than fuel type.

For a typical EV driver covering around 8,000 to 9,000 miles annually, the levy could add up to £250 to yearly motoring expenses. This represents a notable change for households that switched to electric partly to benefit from lower running costs. The government has argued that EVs must contribute more fairly to road maintenance as their adoption accelerates nationwide.

The announcement has drawn mixed reactions from motorists and industry groups. Supporters say the new structure creates a more balanced approach to vehicle taxation, ensuring all drivers contribute to road use regardless of fuel. They point out that without such measures, funding for infrastructure and transport services would become increasingly strained as petrol and diesel vehicles decline.

Critics, however, warn the levy could slow the momentum of EV adoption. Electric vehicles have grown rapidly in popularity due to financial incentives, lower maintenance costs and environmental considerations. Some argue that imposing per-mile charges risks undermining this progress at a time when the government is still urging drivers to shift away from fossil fuels.

Environmental groups have also raised concerns that the tax may send mixed messages about the UK’s long-term climate commitments. They stress that while a fair taxation model is needed, policy should continue to encourage cleaner transport. Ministers have responded by saying the levy is part of a balanced approach that includes continued investment in charging infrastructure and support for low-emission technology.

Drivers are now assessing how the new costs may affect their budgets. For those with longer commutes or frequent travel, the annual impact will be more substantial. Some EV owners worry the change could make their vehicles less economical compared to traditional cars, especially as electricity prices remain unpredictable. The government insists that overall savings from fuel and maintenance still remain in favour of electric vehicles.

Car manufacturers have taken interest in the development as well, recognising that cost considerations often influence buyer decisions. Industry analysts suggest the new levy may prompt some potential EV buyers to delay purchases or reconsider plug-in hybrids as a middle-ground option. The full effect on consumer behaviour will become clearer as the implementation date approaches.

Despite the concerns, the government maintains the levy is essential to ensure long-term stability in road funding. With more drivers moving to electric and fuel duty revenues falling, officials say a mileage-based system is the only sustainable option. They argue that aligning tax contributions with road usage is a fair and transparent approach for the future.

As 2028 draws closer, EV drivers will need to adapt to the new framework and factor the levy into operating costs. The shift marks a significant moment in the UK’s transition to electric vehicles, reshaping how drivers plan and budget for everyday travel. While the coming years will determine how the policy plays out, the extra annual cost of up to £250 will become an important consideration for households across the country.