9:07 am, November 11, 2025
The government’s proposed pay-per-mile scheme on EVs will not extend to vans, according to reports in the national media.
Car Dealer reported last week that chancellor Rachel Reeves is preparing to introduce a per-mile cost on EVs in order to combat a reduction of income from fuel duty.
The measure, which is expected to be announced in this month’s Budget and rolled out in 2028, has drawn strong criticism from across the automotive industry, with the AA labelling it a ‘poll tax on wheels‘.
More details are now being leaked about the potential scheme, with The Times reporting that vans will ‘swerve’ the controversial levy.
In a story over the weekend, the newspaper said that electric vans are not ‘in scope’ for the plans, which will see drivers pay 3p for every mile covered.
However, owners of plug-in hybrids could be slapped with a double bill as they are set to be included in the scheme, albeit at a discounted rate.
The decision means that owners will have to pay the new EV charge, while still splashing out on fuel duty.
The Times goes on to claim that Reeves will justify the measures by arguing that EV drivers currently avoid an average of £600 in fuel duty every year.
A government spokesperson said last week that a ‘fairer’ motoring tax system is needed as the industry continues to pivot towards EVs.
‘Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles,’ they said.
‘We want a fairer system for all drivers whilst backing the transition to electric vehicles, which is why we have invested £4bn in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.
‘Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.’
It is understood that the policy would cost average EV drivers £250 per year.
According to the Telegraph, the EV scheme will involve users estimating how far they will drive over the following 12 months, and making an extra payment on top of vehicle excise duty (VED).
Any miles over their estimate will need to be topped up, but some money would carry over if someone clocks up fewer miles.
Journey examples of a 3p per mile fee include £12 between London and Edinburgh, £5 between Cambridge and Bristol, and £2 between Liverpool and Leeds.
