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Pence-per-mile tax will derail EV adoption, government warned

  • 3 March 2026
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  • Natalie Middleton

More than half of UK drivers say introducing pay-per-mile road charging for electric vehicles would make them less likely to switch to a new or used EV. A

Pence-per-mile tax will derail EV adoption, government warned

More than half of UK drivers say introducing pay-per-mile road charging for electric vehicles would make them less likely to switch to a new or used EV.

In the poll, 55% of drivers said mileage-based charging would deter them from going electric

A poll of around 12,000 motorists by Electrifying.com and the AA saw 55% say mileage-based charging, as announced in the Autumn Budget, would deter them from going electric.

The survey data also suggests consumer confidence in the financial case for EVs remains fragile. When quizzed on whether the overall running costs of an electric car are lower than those of a petrol or diesel car, just 14% agreed, despite consistent independent analysis showing EVs are in fact significantly cheaper to run due to lower fuel and maintenance costs.

The AA and Electrifying.com said the findings should ring alarm bells in government, and warned that mixed messages are confusing drivers and creating uncertainty.

Ginny Buckley, founder and CEO of Electrifying.com, said: “This data should be a wake-up call for Whitehall. Once again, we’re seeing confusing government decision-making around electric vehicles that raises questions rather than builds confidence among car buyers considering making the switch.

“As our survey shows, the proposed pay-per-mile tax sends the wrong signal at the wrong time. Instead of accelerating the EV transition, it risks slamming on the brakes. You cannot claim to support mass adoption while undermining it with the threat of additional taxation.

“No driver would expect to move forward with one foot on the accelerator and the other on the brake – and neither should the Government.”

The study also underscored that consumer awareness of EV cost savings remains “muted”.

Driver knowledge of cost-saving electricity tariffs that help improve affordability was found to be “alarmingly low”. Only 25% of drivers said they were aware of off-peak energy deals that allow EV owners to charge at substantially reduced rates overnight.

That’s despite February’s launch of a new government campaign, dubbed ‘Get That Electric Feeling’, to show the benefits and savings of going electric.

Without driver awareness that EVs are cheaper to run, the prospect of additional road pricing risks reinforcing doubts about whether making the switch makes financial sense.

Edmund King, AA president, said: “This Electrifying.com and AA survey shows that there is still some way to go to convince most drivers to go electric. The latest AA UK Readiness Index, which currently stands at 48.8 out of 100, also shows that the conditions which would help most drivers go electric have not yet been met.

“Mixed messages from the Government are confusing drivers and leaving uncertainty. The early adopters have already made the switch, but mainstream motorists need more accurate information to convince them, even with e-VED, if they can charge at home, they will still be better off going electric. The EV transition is essential, but drivers still need the right incentives and information to make that leap of faith.”

Electrifying.com and the AA also warned of big concerns over how the electric vehicle excise duty (eVED) tax would run, amid a current government consultation. The duo said there were still significant unanswered questions over how mileage would be recorded, whether any form of in-car monitoring would be required, and how privacy concerns would be addressed.

There has been discussion about integrating mileage reporting into the MOT system. However, this raises practical questions for the hundreds of thousands of motorists who buy new electric cars each year, which are not subject to MOT testing for their first three years.

The British Vehicle Rental & Leasing Association (BVRLA) said the new research should give policymakers real pause for thought.

Toby Poston, chief executive, said: “When more than half of drivers say pay-per-mile charging would deter them from going electric, it is clear this is the wrong tax at the wrong time.

“Any reform must protect those who have already made the switch in good faith; it should not retrospectively move the goalposts for drivers and businesses who have invested early.

“We need a rethink. The future of road taxation must be fair, workable and supportive of continued EV adoption. eVED ticks none of those boxes.”