The driver’s view on pay per mile for EV drivers (eVED)

At Budget 2025, the Government proposed introducing a new pay per mile tax for EV drivers (eVED) from April 2028, and then ran a consultation on the design of this scheme, which closed on 18th March 2026.

Introduction of such a scheme carries enormous risk, and if done at the wrong time and in the wrong way, could significantly impact both current EV drivers, and also the appetite for those who haven’t yet switched.

Our report, The driver’s view on pay per mile (eVED) for EV drivers, summarises EVA England’s response to that consultation – shaped by drivers, for drivers.

Download the full report here

What is eVED?

Petrol and diesel drivers currently pay for use of UK roads through fuel duty, which is already accounted for in the price paid at the petrol pump. As the number of electric vehicles on UK roads increases, the Government believes that now is the right time to introduce a new tax that ensures EV drivers also pay for their use of the roads – a tax that will eventually, as EVs become dominant on UK roads, replace the current fuel duty system.

If it goes ahead, EV drivers would pay 3p per mile, half of what petrol and diesel drivers pay through fuel duty – which is around 6p per mile. For example, an EV driver doing around 8,000 miles per year will pay around £20 per month (£240 annually) in eVED compared to a petrol and diesel driver, who would pay around £40 per month in fuel duty (£480 annually) for the same mileage.

Under current proposals, drivers would estimate their annual mileage when renewing their Vehicle Excise Duty (VED). Annual MOT readings would then be used to verify mileage and adjust payments through a balancing charge or credit if needed.

Vehicles under three years old, which do not yet require an MOT, would need to complete a mileage check at an accredited provider, likely an MOT test centre.

Alongside the proposed eVED scheme, the Government also announced a parallel Cost of Public Charging Review, aiming to tackle the current high energy costs driving up public chargepoint prices, which will report in the Autumn.

EVA England’s response – The driver’s view

Our response to the Government’s eVED consultation is drawn from one of EVA England’s largest driver surveys to date. These survey responses were further unpicked in members-only webinars.

Whilst many EV drivers believe that they should ultimately pay for their use of the roads, the majority strongly believe that the introduction of a pay per mile scheme as early as 2028 is creating a level of messaging and policy uncertainty that will have a negative and lasting impact on the transition to electric vehicles – an impact that has likely been underestimated in the Government’s Office for Budgetary Responsibility forecasts.

Nearly all expressed frustration that the initial scheme design has been put together without consultation with drivers, and that their needs have not been taken into account. They have real and significant concerns that the current scheme proposals will leave them substantially out of pocket.

Strikingly, while 95% of EV drivers responding to previous EVA England surveys said they would recommend an EV to friends and family, with 82% highly likely to do so, this figure falls to 78% when households factor in the uncertainty that eVED brings to the overall costs of running their EV.

EV drivers point to eVED increasing costs for them at a time when public confidence in EVs is still incredibly shaky – with only 5% of the full driving community currently driving electric and 39% of non EV drivers responding to our surveys saying they are unlikely to switch to an EV; and at a time when public charging costs can be significantly higher than the costs of refuelling a petrol or diesel car, with 75% of EV drivers believing that current high cost of public charging is creating the biggest barrier to choosing electric for many households.

If eVED does not work for drivers, it should not be introduced:

Drivers who have limited flexibility in how far they drive – for work or caring responsibilities – have real concerns that they will be hit the hardest.
70% of drivers have real and significant concerns about estimating and paying for their mileage upfront. Among households earning under £26,000, 76% are concerned about upfront payments, compared to 56% of the highest earners, with real concerns that they will be left out of pocket by the scheme.
Drivers are unanimous that the scheme must include a rapid refund process, that applies across a wide range of circumstances.
77% percent of respondents say they do not want another party (leasing provider, insurance provider or manufacturer) paying eVED on their behal
Any additional surcharges for spreading payments monthly are seen as an additional unfair tax on those families that cannot afford upfront payment.
Drivers who have to drive their cars abroad, particularly drivers in Northern Ireland driving into the Republic of Ireland, also feel a real sense of unfairness
The use of a proposed technological or telematics solution, where drivers’ mileage data is recorded by the car, generated mixed responses, with some believing it might make the scheme simpler for them, but the majority were concerned about their privacy.

Our CEO, Vicky Edmonds, told MPs at the Transport Select Committee that cost remains a defining barrier:

“For low and middle income households, cost is absolutely essential. There are many who want to switch but simply cannot afford to today. And eVED, which in its proposed form carries significant risk that it will leave drivers out of pocket, only adds to that cost uncertainty.”

In our report, we have made a total of 5 asks to the Government:

1. The Government should delay the introduction of eVED until at least 2030.

By that date, EV adoption will be more established thanks to the ZEV Mandate, and costs, especially public charging and upfront purchase costs, should be more affordable for consumers.

2. The Government should consider replacing fuel duty with a pay per mile tax for non-EV drivers at the same time as for EV drivers.

Moving all road users onto the same road tax system, not just EVs, would create a simple and fair system. The Government should also guarantee EV drivers always pay less than PHEV drivers, and half, or less than half, of the price per mile that non EV drivers do.

3. Any final scheme must be preceded by urgent and successful measures to reduce the price of public charging to levels closer to those seen for home charging, including:

targeted regulatory reform that reduces longer-term energy costs to chargepoint operators
equalisation of VAT rates between domestic and public charging
incentivisation of the use of dynamic pricing models for public charging
regulatory reform to reduce grid connection costs across rural areas, multi-unit dwellings and destination charging sites
targeting the EV charging infrastructure funding to areas where it is most needed, and installation of affordable workplace chargepoints across more public sector sites.

Above all, the Government must ensure that its current Cost of Public Charging review delivers cheaper prices for consumers at the chargepoint.

4. The final proposed scheme must also be preceded by targeted measures to increase the affordability of the EV market for more households.

The additional £1.3bn for consumer incentives announced at Budget 2025 should be used to:

Subsidise extended lower cost leasing packages that apply to both the new and used EV markets to unlock the transition for middle and lower income households
Incentivise simple all-in-one leasing packages that also include charging credits or similar, to simplify and improve the affordability of switching to electric for many
Consider exemptions for low and middle income households from eVED.

5. The scheme design must work for drivers. As a priority, the design of the scheme should be changed so that drivers pay for actual mileage in arrears rather than estimated mileage upfront.

It should also include:

A transparent and quick refund regime to recoup overpayments.
Protection against additional fees by third parties
Removal of any surcharges for paying eVED in instalments
Exemption for international mileage
Consult drivers on the use of telematics, including plans for providing adequate privacy protections.

Download the full report here

A fair transition must work for everyone.

At EVA England, we’re working to make sure every driver, no matter where they live, can access affordable and reliable charging.

If you would like to support our work and help strengthen our advocacy for fair and accessible charging, you can get involved by becoming a member, a supporting partner or donating directly to EVA England.

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