Chancellor Targets EV Drivers

Drivers across the UK could face unexpected average annual costs of around £260 a year under the Chancellor’s proposed 3p-per-mile EV road tax, with drivers in car-reliant regions such as the South East, East Midlands and North West among the hardest hit. 

George Penny, EV charging expert at The Solar Co comments,

“The government’s new pay-per-mile proposal, likely to be incorporated into the Autumn Budget and expected to raise more than £362 million for the government, based on an estimated 1.7 million electric vehicles each travelling an average of 7,100 miles per year.

“This could come as a shock to many EV owners who have previously benefited from road tax incentives, with the Vehicle Excess Duty only being introduced in April 2025.

“Based on the new tax rate of £0.03 per mile and an average annual mileage of 7,100 miles, the average EV driver will pay around £213 per year – but this figure rises sharply in regions where residents are more dependent on their cars for everyday journeys.

“Our analysis reveals that EV owners in the South East will be most impacted, seeing a tax of £260 for the average driver, followed by £230 for EV owners in the South West and £225 for those in the North West.

“Londoners are amongst those least impacted, with an anticipated tax of £160, beaten only by EV owners in the North East, who would face an EV road tax of £130 under proposed legislation.”

Motorists in South East, East and North West impacted the most by proposed EV tax

Data: Analysis of estimated annual average EV tax per region based on annual vehicle miles from The Solar Co

30 to 39 year olds set to be impacted the most by an EV tax

George Penny, EV charging expert at The Solar Co also comments,

“Our analysis also shows that drivers aged 30 to 39 are set to be the most affected by the proposed 3p-per-mile EV road tax, facing average annual costs of around £258, followed closely by those aged 40 to 49 at £249 and 50 to 59 at £213.

“These age groups represent the most active drivers, often commuting daily and managing family travel needs. In contrast, older and younger motorists would be least impacted, with over-70s expected to pay around £105 a year, and the youngest drivers aged 17 to 20 facing just £72.

EV drivers urged to switch tariffs to save up to £353 and beat a Autumn Budget EV tax

George Penny, EV charging expert at The Solar Co comments,

“Drivers on a standard variable rate currently spend about £468 a year to charge at home, but by switching, the savings are substantial. E.on customers on Next Drive Smart v5.2 could save around £353 a year, while Good Energy’s EV Charge plan offers savings of roughly £351. OVO and Octopus Energy users can save about £340 to£345 annually, with Ecotricity and British Gas customers typically saving £285 to £290.

“Even higher-rate options such as EDF EVolve Tracker Sept26 and Fuse Smart EV still deliver annual savings of £150 to £170 compared with the standard tariff.

Top 10 EV tariffs to switch to save up to 352 per year 

*EV tariffs are correct at time of writing. EV charging costs are based on comparing standard-variable rates with tariffs for existing customers. Calculations based on an average 60KW EV travelling 7,100 miles annually with energy efficiency of 4 miles per kWh. The annual cost of charging an EV at the new standard variable rate of 26.35 per kWh was calculated to be £527.00.

About George Penny

Based in Bromley, George Penny is the Director of The Solar Co. He has a passion for leading the UK’s transition to efficient and reliable renewable solutions for households and businesses alike.