Some drivers to ‘pay more’ than current £190 VED fee under pay-per-mile car tax

Motorists on low incomes will find themselves “paying more” under a new pay-per-mile car tax system in a blow to families, according to a leading expert.

Andrew Jervis. CEO and founder of ClickMechanic has stressed that those unable to switch to cleaner electric cars before the system is introduced will be caught out. 

Although no official details have emerged on how a pay-per-mile system would work in the UK, Andrew has previously hinted that fees would likely still be emissions-based with petrol and diesel owners more impacted.

He has predicted road users who travel in vehicles which pump out higher emissions would pay more with the Government likely to continue offering EV incentives.

It means those with higher incomes who can afford a state-of-the-art electric car will pay less to use the roads than those struggling to make ends meet. 

In a major blow, Andrew has warned some of these drivers could even pay more than the standard Vehicle Excise Duty (VED) charge which is currently set at £190 per year.

Speaking to Express.co.uk, he said: “At the same time, there will be a lot of people out there right now who would love to have the money to buy a vehicle with lower emissions but simply can’t afford it, so they will be inevitably hit by any pay-per-mile legislation.

"These groups may find themselves paying more compared to the current VED system, particularly in areas where public transport is not yet widely accessible.”

A pay-per-mile fee would charge motorists for every trip they make, replacing the current VED and fuel duty system. 

It means motorists who use their vehicle a lot will pay more than those who stay at home and barely travel.

Rumours around a pay-per-mile system have surfaced in recent weeks after a former Treasury official confirmed preparatory work on a road pricing system was being mapped out. 

Howard Cox, founder of FairFuelUK has even suggested an announcement around a new tax system could be made as soon as the Autumn Budget next month. 

Iain Read, head of Editorial at Carwow said that he expects EV running costs to be lower than a petrol or diesel car even if the tax method is updated.

Iain warned Labour has a difficult task of balancing EV incentives with generating revenue to fill a £22 billion hole in public finances.

He previously told Express.co.uk: “Because the Government has committed to reintroduce the ban on selling new petrol and diesel cars in 2030, it needs to incentivise consumers to make the switch to EVs.

“Can it increase the tax take from drivers while also supporting the switch to EVs? That sounds like an impossible task.”