EV Pay-Per-Mile Taxes Could Dent The Market, Says Confused.com

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The latest consumer attitudes research from Confused.com;

Almost a third (31%) of UK motorists are put off owning an EV due to the new proposed taxes being introduced from 2028. That’s according to new research from car insurance experts at Confused.com.

According to the research, being too expensive (67%), a lack of charging points in their area (34%), and not a good enough range vs. miles (28%) are the main reasons putting people off buying EVs.

And following the news in April of the potential introduction of the pay-per-mile tax on EVs, only 38% of drivers admitted they would definitely keep their EV once the new tax comes into effect. That’s compared to just 7% who are unlikely to keep their EV. Though ditching EVs isn’t uncommon, as 5% of EV owners have also decided to switch back to a petrol, diesel or hybrid car in the past.

The new charge, which is set to begin in 2028, based on the announcement in the 2025 Autumn Budget, has proposed costs of 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids. This could result in EV drivers who travel 10,000 miles paying £300 in tax.

Yet, an EV can still be cost-effective to run, even with the introduction of this new tax. That’s because the cost works out as roughly half of what petrol and diesel drivers pay in fuel duty per mile.

However, many drivers are still opting against EVs and choosing to drive a petrol, diesel, or hybrid car instead. Over two thirds (67%) of drivers have found that EVs are too expensive to buy.

For over a third (34%), they are reluctant to switch because of a lack of charging points in their area. Previous research from Confused.com revealed that there are 28,734 council-owned public EV chargers, and 24,687 new ones could be installed in the next 2 years.

Yet as of 2025, there was just 1 council-owned EV charger per 36 EV drivers in the UK. That’s as there are currently 1,042,219 registered electric vehicles in the UK, according to SMMT data.

This contributes to over a quarter (26%) of people who have driven an EV in the past switching back to a petrol, diesel or hybrid car because of the inconvenience of an EV.

WHERE DO YOU SEE YOURSELF IN 5 YEARS’ TIME?

The average timeline for UK drivers thinking they will make the transition to EVs now spans 5 years. This pushes the switch-over year to 2031, just 4 years away from the COP28 scheme’s deadline of new vehicles in the UK being completely zero-emission by 2035(4) .

For 17% of drivers, the ban on new petrol and diesel cars by 2030 would push them to switch to an EV. And for nearly 1 in 3 (29%), a lower upfront purchase price would sway their decision to opt for an EV.

Despite the upfront costs, EVs can still be cheaper to run, even with the introduction of the pay-per-mile tax. That’s because electricity is generally cheaper than filling up with petrol. And with the drop in wholesale oil costs, many are anticipating a further increase in petrol prices(5) .

The research from Confused.com reveals that 73% of drivers currently drive a petrol car, suggesting that the full switch to EVs is still a way off.

Meanwhile, nearly half (47%) of drivers’ decisions to switch to an EV or not have not been influenced by the introduction of the new road tax, and this has not changed their mind.

For those who choose to drive an EV, car insurance experts at Confused.com developed an EV Pay-Per-Mile Tax Calculator to help drivers understand the upcoming 2028 changes and help them understand how much they could be paying once the new tax comes into effect.

Matt Crole-Rees, motor expert at Confused.com, comments:

“The government’s plan to transition to EVs instead of petrol and diesel cars by 2030 and the hybrid ban in 2035 may feel overwhelming for some motorists as cost, convenience, and range are barriers for drivers switching to EVs.

“Even more changes are coming in 2028, including the eVED pay-per-mile tax and annual increases. So, it’s important that drivers understand these changes, why they are put in place, and the impact they can have on their spending.

“A greener and more efficient way of driving is a key priority for the government, and plans are in place to make this change as seamless as possible.

“It’s important for drivers to understand how the new EV rates and rules apply to specific cars to stay on top of increasing costs. You can find out how much the new changes will cost you through our EV Pay-Per-Mile Tax Calculator.

“It’s important to remember that these anticipated changes may also change before 2028, so drivers should monitor relevant announcements closely.”

About alastair walker 19869 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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