Still charging your EV like it’s 2018? That’s the energy equivalent of putting lawnmower fuel in a supercar.

The UK is gearing up for a fundamental shift in how electric drivers pay for roads. From April 2028, a pay-per-mile system for EVs is planned to kick in, designed to pick up the revenue slack as fuel duty fades. If you own an electric car, manage a fleet, or just like a good policy plot twist, here’s what to expect and how to get ahead of it.

The problem: fuel duty is shrinking, but roads still need funding

EVs avoid fuel duty, which has long bankrolled UK roads. As electric adoption rises, that funding model frays. The government has already moved to put EVs on standard Vehicle Excise Duty (VED) from April 2025, ending their exemption, as noted in this GOV.UK guidance and explained in this RAC guide. But VED alone doesn’t replace lost fuel duty, which is where mileage-based road pricing comes in.

The solution: pay-per-mile for EVs starting 2028

The proposed Electric Vehicle Excise Duty (eVED) would charge EV drivers per mile from April 2028. Consultation materials have indicated illustrative rates such as around 3p per mile for battery electric vehicles and around 1.5p per mile for plug-in hybrids, with payment integrated alongside VED, as outlined in this consultation document. The goal is straightforward: maintain fair contributions to road funding as the fleet electrifies.

Likely rate structures

• Simple per-mile bands by powertrain: for example, a flat rate for BEVs and a lower rate for PHEVs, per the consultation.
• Billed alongside existing VED rather than at chargers or fuel pumps, per the consultation.
• Details may evolve following stakeholder feedback and pilots. Expect clarity on exemptions, commercial vehicles, and compliance before rollout.

Data and privacy: how will mileage be measured?

There are multiple ways to tally miles, each with different privacy trade-offs. Odometer declarations are simple but rely on honesty and occasional verification. Telematics can automate reporting but raise data security questions. The government’s consultation process explores implementation options, with an emphasis on proportionality and practicality, as discussed in the consultation. Expect clear guidance on how mileage is recorded, stored, and audited before the scheme goes live.

Rural vs urban: who pays more?

Rural drivers tend to rack up more miles, so a flat per-mile system will bite harder outside cities. Urban drivers may see lower mileage bills but still face local charges where applicable. The headline is simple: miles matter. If your typical week includes long commutes or out-of-town service routes, eVED will be a larger line item. For policy framing and current EV tax context, see GOV.UK and RAC.

EV total cost of ownership: a quick reality check

Total cost of ownership (TCO) for EVs remains competitive thanks to lower energy and maintenance costs, even with new taxes. From April 2025, EVs fall under standard VED rates, per GOV.UK. Looking ahead:

• Illustrative annual mileage cost: 7,400 miles (typical UK driver) at 3p per mile is about £222 per year under eVED.
• Add standard VED from 2025 and your recurring road-related costs are more predictable than fuel-duty-on-petrol swings.
• Energy costs: smart tariffs and efficient driving can keep electricity per mile well below petrol equivalents, as reinforced by consumer analyses in RAC’s EV running cost resources.

Battery durability is trending in the right direction, with typical warranties at 8 years or 100,000 miles and average degradation of roughly 1 to 2 percent per year under normal use. That helps preserve residuals and long-term TCO. For broader tax context, see GOV.UK.

Fleet and business impacts

• High-mileage fleets will feel eVED the most. Focus on right-sizing battery packs, optimizing duty cycles, and prioritizing efficient models.
• Telematics becomes a TCO lever. Real-time routing and eco-driving feedback can shave miles and kWh, which matters when miles are monetized.
• Charging reliability and speed are improving, with more high-power hubs coming online and better uptime. Keeping vehicles charged on optimal tariffs will matter more when per-mile costs stack with energy and VED, as noted in industry summaries and consumer guidance like RAC.

How to prepare now

• Smarter charging: adopt time-of-use tariffs and smart chargers to minimize per-mile energy costs, and schedule charging when power is cheapest.
• Efficient vehicle choices: prioritize models with strong efficiency ratings and dependable thermal management. Efficiency is the new horsepower in a pay-per-mile world.
• Route planning: consolidate trips, use eco-routing, and track mileage. Treat miles like money, because soon they will be.
• Solar plus storage: if feasible, pair home or depot charging with solar and a battery to smooth peak rates and cut operating costs. Modern systems are delivering better low-light performance and higher panel efficiencies, boosting the economics.

The bottom line

From 2028, the UK’s pay-per-mile system will put a price on every EV mile. It’s a fairer way to fund roads in an electric era, and it will sharpen the focus on efficiency, planning, and smart charging. Get your data in order, your routes optimized, and your tariffs tuned. The future of EV ownership is still bright, just a little more measured per mile. For official details, start with the government’s consultation and GOV.UK’s tax guidance, and keep an eye on practical guidance from RAC.