If you thought buying an electric car would save you money in the long run, the government has some news that might make you think twice.
Ministers have confirmed they’re moving forward with plans to introduce a pay-per-mile road pricing system specifically targeting electric vehicle drivers. The move comes as Treasury receipts from fuel duty continue to collapse, with EV adoption eating into what was once a reliable £25 billion annual revenue stream.
The logic is straightforward enough. As petrol and diesel cars disappear from British roads, so does the tax income that pays for those roads. Someone has to fill that gap, and right now, EV drivers are getting something of a free ride.
“The current system simply isn’t sustainable,” one senior transport policy adviser told industry publication Fleet News. “Road pricing isn’t a punishment for going electric. It’s about ensuring everyone contributes fairly to the infrastructure they use.”
The consultation process, which is now formally underway, is exploring a range of models. A flat pence-per-mile charge is the frontrunner, though more sophisticated options involving peak and off-peak pricing are also on the table. Rural drivers, who tend to clock up significantly more miles than their urban counterparts, are already raising concerns about disproportionate costs.
It’s not a uniquely British idea. New Zealand trialled a similar scheme before scrapping it in 2023 after widespread backlash. Oregon in the United States has been running a voluntary road usage charge programme since 2015, with mixed results.
Critics argue the timing is awkward. The government spent years encouraging drivers to go electric with grants, subsidies, and tax incentives. Now, just as EV ownership is becoming mainstream, the financial goalposts appear to be shifting.
The RAC has urged the government to tread carefully, warning that any new charge must be simple, transparent, and not so punishing that it discourages the switch to cleaner vehicles altogether.
Implementation is still likely years away, with full legislation not expected before 2027 at the earliest. But the direction of travel is clear.
The question now is whether the government can design a system fair enough that EV drivers don’t feel penalised for doing exactly what they were told to do.
