New pay-per-mile tax scheme may see older UK drivers paying up to £1,061 per year
Older drivers who rack up additional mileage due to family demands
A proposed 15p per mile pay-per-mile car tax could hit older drivers hard, with those over 70 potentially starting at an annual sum of £249, and those in their 50s facing a staggering £1,000 bill. The rationale is based on average mileages, which for the over-70s stands at 1,665 miles, 28% less than the all-age group average.
The trajectory for car insurance premiums usually sees rates decline with a motorists age, up until they reach 75. At this point, rates tend to rise once more.
Regulation dictates that motorists reapply for their driving licence at 70 and must renew it every three years thereafter.
It's often older drivers who rack up additional mileage due to family demands, such as chauffeuring children to school runs, birthday parties, or family day trips, aside from their work commute. These additional drives can substantially increase yearly totals.
Indeed, Statista alarms users with statistics showing drivers from 50 to 59 years old average 6,774 miles annually, potentially translating to a hefty £1,061 if the road taxing scheme comes into play, reports Birmingham Live.
Shift Driving School weighs in: "If implemented, this pay-per-mile tax would mark a significant change in how road usage is taxed in the UK. It represents a shift from taxing fuel consumption to taxing road usage directly. While this could create a more sustainable revenue model in an era of electric vehicles, it also introduces new challenges in ensuring that the tax system remains fair and equitable."
"As the UK navigates the transition to electric vehicles, the proposed pay-per-mile road tax is a critical issue that will impact millions of drivers. The balance between environmental responsibility and fair taxation will be at the heart of the debate as the Labour Party prepares to unveil its plans in the upcoming Autumn Budget."
