Government confirms plans to introduce eVED from April 2028
Tue 14 July 2026
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Following a consultation, the Government has announced some practical changes to the eVED scheme which will introduce a mileage-based charge for electric vehicles. However, the Government remains committed to introducing the charge from April 2028, despite opposition from fleet and chargepoint operators and electric vehicle users.
The Government notes in its answer to consultation respondents that fuel duty receipts are set to decline to near zero by 2050 as the transition to EVs accelerates. The Governmment says: "Given all cars cause congestion and wear and tear on the roads, eVED has been designed to ensure EV and PHEV drivers make a fair contribution to the public finances as fuel duty revenues decline, while continuing to pay less than the equivalent fuel duty paid by petrol and diesel vehicles."
While reiterating its commitment to the EV transition, the Government says that the impact of eVED is outweighed by the favourable tax treatment otherwise afforded to electric vehicles compared with petrol and diesel cars. It also says that around 80% of eVED revenue from the first three years of the tax will be reinvested to support the development of the sector.
The eVED charge has been proposed (by outgoing Chancellor Rachel Reeves) to be set at around half the fuel duty rate paid by drivers of petrol cars.
The Government says that the key concerns raised in the consultation were around the potential impact on electric vehicle uptake and the administrative complexity for motorists, businesses, fleets, leasing companies and MOT garages.
It says: “The Government has carefully considered the consultation responses and refined the proposed design. In particular, the Government will not proceed with the proposed requirement for vehicles under three years old, which are not currently required to have an annual MOT, to have additional mileage checks. The Government has also significantly simplified the arrangements for fleets and leasing companies to reflect the way these businesses manage large vehicle fleets. This includes allowing the use of estimated mileage readings, introducing bulk licensing arrangements and providing greater payment flexibility."
The Government says that the changes will make eVED simpler to comply with while ensuring it remains "a fair, proportionate and sustainable approach to motoring taxation.”
The new tax has been criticised by a range of interest groups who welcomed some of the changes to ease the burden of regulation on operators, but criticised its potential overall impact and timing.
Speaking after the Government published its response, Toby Poston, BVRLA chief executive, said: "“When it comes to the Wrong Tax at the Wrong Time, eVED, the fleet sector has spoken loud and clear. This poorly designed and scheduled tax would pile extra cost and bureaucracy onto fleets and drivers and eviscerate EV demand just as the Government’s sales targets start ratcheting-up.
“It is great that the Government has taken some of the roughest edges off its eVED plans. They’ve accepted that a tax designed around private motorists won’t work for the fleets that are driving the UK’s transition to electric vehicles.
“But there is no avoiding the fact that you can’t create a smooth switch to electric vehicles by making them more expensive to own. The mechanics of the tax may have improved, but the timing is still wrong.”
EVA England, which represents electric vehicle owners, says the policy does not work for drivers. Publishing an open letter to the (former) Chancellor, Chief Executive Vicky Edmonds said: " I urge you to pause and re-think this policy before it is taken any further... In its current form, eVED does not work for drivers – those who are ultimately being asked to pay this new tax.
"It is being introduced at the wrong time: at a critical point in the switch to electric, where real challenges such as access to affordable charging for nearly 40% of households have still not been dealt with and are presenting a considerable barrier to EV demand.
"This new charge risks making EV ownership feel even more expensive, complicated and uncertain to those who are already struggling or are sceptical about making the switch. Drivers are not being required to buy electric cars; they must have the confidence to choose them. Pressing ahead with an untested and burdensome tax risks weakening that confidence just as the Government needs consumer demand to grow."
“At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved. This now piles pressure on the public charging review that must pave the way for affordable charging, or this transition simply won’t work for drivers.”
Colin Walker, Head of Transport at the Climate & Intelligence Unit (ECIU), said: "While these mixed signals on EVs from government risk confusing drivers, eVED will not stop EVs remaining significantly cheaper to run than petrol cars, delivering savings of over £1000 a year.
“But a rumoured Government u-turn on EV sales targets [the ZEV Mandate] would really put British drivers at a disadvantage, incentivising car companies to sell their electric cars elsewhere, leaving the UK more heavily reliant on hybrids which don’t do the mileage they claim, costing drivers more while at the same time continuing to emit air pollution."
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