The proposed EV per mile tax UK drivers are set to face from 2028 is already changing minds. According to new research from AutoTrader, nearly half of motorists considering an electric car say the announcement has made them rethink their plans. That is awkward timing for a government still publicly committed to accelerating electric vehicle adoption.
From 2028, electric car drivers would pay a 3p charge for every mile travelled. Chancellor Rachel Reeves framed the move as part of longer-term road pricing reform. AutoTrader, however, says it risks undermining confidence just as EVs begin to gain real momentum.
Nathan Coe, AutoTrader’s chief executive, described the policy as “incoherent and inconsistent” with the wider push to move drivers away from petrol and diesel.
Cost remains the biggest blocker
AutoTrader’s report, No Driver Left Behind, highlights cost as the single biggest barrier to buying an electric car. While 62% of motorists say they are considering an EV as their next vehicle, that figure drops sharply among lower-income households.
For drivers earning under £40,000 a year, interest falls to 48%. Among those earning above that threshold, it rises to 73%. The data points to a clear affordability gap.
Electric cars still cost around 17% more than their petrol equivalents. Battery prices are falling, but not fast enough to offset concerns around purchase price, future taxation and overall EV running costs.
This is where the proposed per-mile charge appears to cut through. Even drivers already weighing higher upfront costs are now factoring in uncertainty about how electric car tax in the UK might evolve over time.
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Age, gender and location all matter
The research also shows electric vehicle adoption is far from uniform across the population.
Younger drivers are far more open to going electric. Around 72% of those aged 17 to 34 say they are considering an EV. Among over-55s, that figure drops to just 35%.
There is also a noticeable gender gap. Women are around ten percentage points less likely than men to say they would switch, often citing charging concerns and anxiety about battery range, particularly for family use.
Location plays a role too. City drivers are the most enthusiastic, with 72% open to the switch. Rural drivers are less convinced, despite often having better access to off-street parking and home charging. AutoTrader suggests this shows infrastructure is only part of the story. Confidence and clarity matter just as much.
Are EVs becoming a two-tier market?
One of the more striking findings is the risk of a wealth divide emerging. Ian Plummer, AutoTrader’s chief customer officer, warned that without more affordable options, the transition could benefit only higher earners.
He said: “If lower income households can’t access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off.”
Manufacturers have focused heavily on SUVs, which offer higher margins but push prices up. Smaller, cheaper electric cars remain limited in supply, despite long-standing demand in the UK market.
What this means for UK drivers
Electric cars are clearly no longer niche. According to the Society of Motor Manufacturers and Traders, 32.3% of new cars sold in Britain last month were fully electric. Across 2025 as a whole, EVs accounted for 23.4% of new registrations.
Even so, December was the only month where the government’s 28% cent target was met. Manufacturers that fall short face penalties or must buy credits from competitors who exceed the threshold.
Against that backdrop, introducing an EV per mile tax UK motorists are still trying to understand risks slowing progress. For many drivers, the future of electric vehicles in the UK now feels less predictable, not more.
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