The Government has confirmed that pay-per-mile charging, known as eVED, for battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) will come into force during 2028.
However, cars under three years old will not be required to attend MOT stations for verification, removing a potential increase in complexity for workshops.
The consultation response indicated that eVED will come into effect in April 2028. From that point onwards, BEV drivers will need to pay 3p per mile, while PHEV owners will pay 1.5p per mile.
This will be introduced to mitigate the loss in fuel duty that is expected to be felt as BEVs and PHEVs increase in popularity.
Motorists will be required to provide their current mileage when they renew their VED, and estimate the mileage for the year ahead. The DVLA will then calculate eVED liability, and request payment for the year ahead in full, or in instalments, via the existing VED system.
Mileage payments can be topped up during the year if the estimated distance is likely to be exceeded. Otherwise the outstanding balance will be collected at the next VED renewal. Any credit is carried over into the next period.
The consultation on the eVED proposals, which were announced in November last year, ran until 28 March, and saw submissions from around the automotive aftermarket, including industry bodies and garage owners alike.
No pre-MOT checks for eVED
When first announced, the government proposed that mileage checks could take place during a vehicle’s MOT. If the car was under three years old, they may be required to attend a workshop annually to have their mileage verified.
However, the consultation response now states that this proposal will be dropped. The system will instead rely on motorists providing accurate mileage estimates, supported by clear guidance and tools, with reconciliation taking place against verified mileage data at the first MOT.
The government will keep the operation of eVED under review, and will begin developing optional additional functionality within eVED, which will allow motorists to choose to make use of their car’s in-built connectivity. Making use of mileage data that cars already report will be optional, but those that do opt in will benefit from a quicker, easier to use, and more flexible system.
It was also stated within the consultation document that the goverment will continue to work closely with representative bodies, garages, manufacturers, fleet and leasing businesses and other stakeholders as this work progresses and will provide a further update by the end of the year on the plan for this opt-in eVED functionality.
MOT checks will be critical
During the consultation period, many respondents supported using the existing MOT network for mileage checks, viewing it as an established and trusted route, rather than establishing a need for a new verification programme.
However, there were concerns that the cost of eVED mileage checks should not be passed on to motorists and welcomed the government’s intention to engage with garages to understand the costs of additional checks.
Respondents commented on the capacity of the MOT network and highlighted the need for a phased and well-supported implementation. There was also emphasis around the importance of ensuring that mileage submission systems integrate with existing MOT software and that garages are supported through clear guidance, training and ongoing technical assistance.
Some further noted that the role of garages should be clearly defined and limited, with appropriate protection from liability, and that responsibility for public communications should rest with government rather than garage staff.
The biggest issue was that of cars younger than three years of age, with mileage checks at workshops adding burdens and costs for motorists, additional pressure on the MOT network, and possible impacts on EV uptake.
With all this in mind, the requirement for pre-MOT vehicles to visit workshops for eVED verification has been scrapped. Instead, drivers will need to provide a mileage reading from their odometer, together with estimated mileage for the year ahead.
However, this mileage reading will need to be checked at the first MOT. This can then be reconciled with the readings provided by the vehicle owner.
“It is expected that the small number of additional ad hoc checks required will be conducted through this network,” the consultation report states. “The government will continue to work closely with the MOT industry to minimise the impact of these changes and ensure that fees or payments for work reflect costs.
“The government will also work with industry on ensuring that any changes to the MOT process – for example handling of nonfunctioning odometers – have clear guidance for those conducting the work.”
Concerns over anomalies
The Institute of the Motor Industry (IMI) has welcomed the government’s response to the eVED consultation. However, it is warning that a critical delivery risk remains unresolved: the assumption that every MOT garage will be equipped to deal with EV mileage anomalies.
The IMI’s Consultation submission supported the principle of a mileage-linked model, but stressed that implementation must reflect real-world workshop capability, EV technical complexity, odometer discrepancies, diagnostic access issues and workforce capacity constraints.
“The Consultation outcome shows the government has genuinely listened to the automotive profession. Ruling out mandatory telematics, building eVED into the existing VED and DVLA systems, anchoring mileage validation in the MOT, and committing to simple reconciliation and sensible arrangements for fleets and lifecycle events are all things the IMI called for. That is a pragmatic foundation, and we welcome it,” said Nick Connor, CEO of the IMI.
“However, there is one big question the response does not yet answer: can eVED be delivered safely and consistently if the system assumes every MOT garage can deal with EV mileage anomalies? The risks around odometer tampering, mileage data being held in more than one place in a vehicle, and the central role MOT garages will play in recording mileage have been recognised in the Consultation response, yet there is no clear plan of how those risks will be managed on the workshop floor.
“Diagnostic capability varies significantly across the MOT network. Reading a dashboard odometer is one thing; investigating a disputed, missing or potentially tampered mileage reading on an electric vehicle is quite another.
“We are, therefore, urging government to adopt a number of practices we proposed in our submission to the Consultation. There need to be clear diagnostic escalation routes, competence-based accreditation and standards aligned with IMI TechSafe. There also needs to be a clear commitment to support for garages on equipment and training. Without these, disputes will fall inconsistently on garages, motorists and the DVLA, and public confidence in the new tax will suffer.”
ZEV mandate changes?
The news comes as the government is considering an earlier consultation on the zero-emission vehicle (ZEV) mandate. Currently, the UK new-car market is expected to see 33% of registrations in 2026 come from ZEVs, made up of BEVs and hydrogen models. As fuel-cell technology is not mass market, the reliance is fully on BEVs which, after six months of the year, only held 25% of all deliveries.
The market has struggled with the ZEV mandate targets every year since it was introduced. This has led to calls for a reworking of the goals, something that was in progress until the resignation of Kier Starmer.
Speaking to the audience at the recent SMMT International Automotive Summit, Peter Kyle MP, Secretary of State for Business and Trade – and President of the Board of Trade – told the conference that a review of the current ZEV mandate will be completed as soon as he can possibly manage it.
“The consultation on the ZEV mandate has to be balanced, acceptable, affordable, and effective for the British automotive industry and to the UK wider economy”, he said. “Make no mistake, we are committed to the EV transition and the creation of world-leading EV manufacturing ecosystems here in the UK.”
The confirmation of eVED is likely to impact sales of BEVs and PHEVs, and this will, in turn, cause market shares to fall below requirements. Therefore, the implementation of additional taxation should go hand in hand with a ZEV mandate review. However, no such consolation on the legislation is yet forthcoming.
