The quick take
Electric cars are not suddenly becoming expensive to run, but the gap between EVs and petrol or diesel cars is starting to narrow. From April 2028, the Government is expected to introduce electric Vehicle Excise Duty, usually shortened to eVED. The plan is for fully electric cars to be charged 3p per mile, while plug-in hybrids would pay 1.5p per mile.
That sounds boring, but it matters. If you drive 8,000 miles a year in a fully electric car, that would work out at about £240 a year, or £20 a month. If you drive 15,000 miles a year, it would be £450 a year. It is not enough to kill the electric car argument, but it is enough that drivers should build it into the running cost calculation.
Why is this happening?
The simple answer is fuel duty. Petrol and diesel drivers pay tax every time they fill up. EV drivers do not. As more people switch to electric, the Government loses fuel duty income, so it needs another way to tax road use.
eVED is designed to link tax to mileage. The more you drive, the more you pay. In principle, that is not wildly different from fuel duty. The big difference is that EV drivers are not used to thinking about road tax on a per-mile basis.
Does this mean EVs are no longer worth it?
No. For many drivers, electric cars will still make sense, especially if you can charge at home or work. The cost per mile on cheap home electricity can still be much lower than petrol or diesel. Company car drivers also continue to benefit from much lower Benefit-in-Kind tax than equivalent petrol or diesel cars.
But it does make the conversation more honest. We cannot just say EVs are cheaper and leave it there. You need to look at the full picture: monthly payment, insurance, charging, public charging, tyres, servicing, tax and depreciation.
The bit drivers need to watch
Mileage will matter even more. If you underestimate your mileage on a lease, you already risk excess mileage charges. If mileage-based tax is added on top, getting your annual mileage wrong becomes even more expensive.
For private buyers, the question is slightly different. If you own the car, eVED will become another annual cost to plan for. It may not be painful at lower mileages, but high-mileage drivers will notice it.
My take
I do not think this is the end of the EV advantage. Far from it. But it does mean the easy headlines are over. EVs are brilliant when they fit your life, your charging access and your mileage. They are less convincing when you rely heavily on expensive public charging or do big motorway miles without planning.
For me, this is another reason to judge cars by real-world use, not just the badge, range figure or monthly payment. The right EV can still save money. The wrong one can become a compromise.