MPs hear from transport and technology experts on eVED

22 May 2026

The briefing paper seeks to clarify the benefits and challenges of the Government’s proposed electric Vehicle Excise Duty (eVED) scheme, which was announced in last year’s Budget as a replacement for fuel duty for electric vehicle (EV) drivers from April 2028.

With the Government now reviewing and considering the responses to its public consultation on eVED, Electric Vehicle Excise Duty (eVED): Your questions answered includes measures to improve the scheme:

• Measures to improve the scheme for drivers, such as providing additional options for reporting mileage and receiving refunds
• Further measures to support the EV transition, including reducing the cost of public charging and offering targeted grants and a social leasing scheme for low-income households.

Silviya Barrett, Director of Policy and Research at Campaign for Better Transport, said: “The introduction of eVED is an important and timely step in the right direction towards fairer vehicle taxation. We know EV owners understand the need to start paying road tax eventually, and that petrol and diesel drivers believe that EV drivers should make a fair contribution to vehicle taxation. eVED will also help offset the ‘rebound effect’ we are seeing in Norway, where electric vehicle ownership is leading to a 10-20 per cent rise in car trips.

“With the Government currently considering the responses from a public consultation on eVED, we hope both odometer and telematics-based mileage checks are provided as options to suit drivers’ different preferences. Reducing the cost of public EV charging will also be crucial to ensure EVs are more attractive to people who cannot charge at home.”

Campaign for Better Transport was joined at the event by experts from the transport and technology sector with speeches from Tim Wray, UK & Ireland Sales Director at Kapsch; Max Sugarman, Chief Executive of Intelligent Transport Systems UK (ITS-UK); Vicky Edmonds, CEO of EVA England; Steve Gooding, Director of the RAC Foundation; and Richard Sallnow, Associate, PA Consulting.

Tim Wray, UK & Ireland Sales Director at Kapsch, said: “We support fair, usage-based road charging, enabled by secure, privacy-friendly technology and flexible billing models. Our experience delivering similar systems internationally shows that, to make eVED a success, drivers must be offered a choice from the outset. Providing both odometer-based and location-based options helps people select the approach that best suits their needs, ensuring there is public acceptance from the outset.”

Max Sugarman, Chief Executive of Intelligent Transport Systems UK (ITS UK), said: “The transport technology sector strongly supports the Government’s proposals to introduce eVED as an important first step towards addressing the long-term decline in fuel duty revenues. However, it is critical that any future scheme includes a technology-enabled option from day one – making payment simpler for drivers, ensuring motorists are not charged for miles driven overseas, and giving transport authorities greater flexibility and control over how the road network is used. This briefing from Campaign for Better Transport offers a clear and useful overview of the policy, and we look forward to continuing the discussions around eVED as proposals are developed.”

Steve Gooding, RAC Foundation Director, said: “While the basic elements of the new eVED are clear, the devil, as always, will be in the detail. The DVLA’s car tax online service sets a high bar for convenient, intuitive online payment and while debate on the rationale for eVED rumbles on the clock is ticking for Government to ensure eVED functions as simply and seamlessly from day one. Even kept to its simplest form that is going to be quite a stretch.”

Vicky Edmonds, Chief Executive Officer of EVA England, said: “We welcomed the chance to contribute the EV drivers’ view to a debate that matters deeply. Our own findings show that most current and prospective EV drivers are very confused and concerned about eVED, from how mileage will be reported to whether the new charge will make electric driving feel less affordable and leave them out of pocket. Bringing in a new tax such as eVED before wider barriers to the transition to electric are addressed, and without designing and making it work for the driver itself, risks adding uncertainty and cost at the very moment the UK needs to build confidence and accelerate uptake.”

Richard Sallnow, roads expert at PA Consulting, said: “The proposed introduction of eVED in 2028 can be seen as an extension to the existing road tax framework, accounting for new vehicle types under a pay-per-use principle. This proposal creates a fair taxation for all drivers, whilst continuing to influence the shift to EVs with a reduced tax versus traditional petrol/diesel vehicles. As Government approaches the design of eVED, it must prioritise simplicity in both implementation and user experience and consider how an opt-in digital offering might complement this approach and significantly enhance the customer offer.”

You can read Electric Vehicle Excise Duty (eVED): Your questions answered here.

ENDS

For further information please contact the press office on 07984 773 468 (calls only no texts) or communications@bettertransport.org.uk.

Notes to Editors

eVED is a replacement for fuel duty for EV drivers, charged at a rate of 3p-per-mile for fully electric cars, and 1.5p-per-mile for hybrids. Drivers will be required to estimate their mileage at the start of each year and pay eVED alongside their existing Vehicle Excise Duty (VED) payment. Mileage will then be verified at the annual MOT and a credit issued for the following year if an overpayment has been made.

eVED was announced in the 2025 Autumn Budget and is set to be introduced from 1 April 2028.

Campaign for Better Transport operates in England and Wales. Campaign for Better Transport’s vision is for all communities to have access to high-quality, sustainable transport that meets their needs, improves quality of life, reduces inequality, and supports a vibrant, productive and decarbonised economy. Campaign for Better Transport Charitable Trust is a registered charity (1101929).

Kapsch TrafficCom is a globally renowned Austrian-based technology company specialising in intelligent transportation systems (ITS). It provides solutions for tolling, traffic management, and traffic demand management, aiming to reduce congestion and improve road safety across 50+ countries.