Pensioners most impacted by pay-per-mile rule changes with updates in weeks

Elderly road users could be affected by new pay-per-mile car tax changes which could be announced as early as next month.

By Luke Chillingsworth, Cars Reporter

elderly driver

Older drivers could be impacted by a pay-per-mile charge (Image: Getty)

Older drivers are set to be one of the most impacted demographics under a new pay-per-mile car tax change expected to be announced in weeks. 

Statistics show that elderly road users above 70 years of age are likely to travel less than other age groups. 

It means motorists in this category could see a massive benefit if a new fee charging drivers for every mile they travel is introduced in place of the usual Vehicle Excise Duty (VED)

According to experts at Taking Care, the average annual mileage of drivers over the age of 70 is just 1,665. 

This is around 28 percent lower than the average for all drivers across the other age demographics.

older driver

Older drivers travel a lot fewer miles than other younger age groups (Image: Getty)

Previous Government data conducted back in 2016 also shows elderly drivers travel around 2,045 miles per year. 

Meanwhile, all the other age ranges travelled double with everyone else racking up an average of 4,137 miles per annum.

Bradley Post, MD of finance experts at RIFT has previously admitted how good a position older road users are in ahead of an announcement. 

He explained: “Those due to benefit most are the motorists who don’t rack up the miles, older motorists and those who live in more urban areas with good public transport link."

Under current rules, older drivers are forced to pay a flat £190 fee to use the road no matter how far they drive. 

It means those not using the roads as much are paying the same as a daily commuter travelling tens of thousands of miles every year. 

A pay-per-mile charge is understood to be in the pipeline with Howard Cox, founder of FairFuelUK suggesting an announcement could be made at the Autumn Budget.

There has been no official news on how much drivers could pay under a new system, but the Resolution Foundation has suggested a 6p per mile fee could be set. 

Using Taking Care’s 1,665 miles figure as an estimate older drivers would pay just £99.99 per year under a 6p per mile charge, cutting their car tax bill by almost half. 

A pay-per-mile fee is set to be unpopular among road users with polls showing road users are generally against. 

However, data shows older drivers are less bothered about an update than younger generations. 

A poll from GoCompare found that a whopping 60 percent of drivers aged 18 to 24 were against the move compared to 48 percent of drivers aged 55 and over.

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