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The Independent: Will it still be worth getting an electric vehicle from 2028

Journalist: Marc Shoffman, Freelance

ended 27. November 2025

Helloo,

I am writing a piece for The Independent on the EV pay per mile stuff in the Budget.

I am looking for comments on whether it will still be worth purchasing or leasing an electric car. Would the pay per mile costs end up costing more than the fuel savings. 

I am also looking for any calculations or views on at what point the tax savings from a company car scheme either through a limited company or salary sacrifice would be outweighed by the pay per mile cost.

Many thanks

Marc

 

3 responses from the Newspage community

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Editor
Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
Electric dreams risk turning into expensive drives Even with the new 3p-a-mile charge, electric cars can still make financial sense but only if you’re honest about how you drive. Electricity is still cheaper than petrol, and maintenance costs are lower, so for an average driver doing around 8,000–10,000 miles a year, EVs should remain slightly ahead. But the pay-per-mile levy narrows that margin for high-mileage drivers, the extra cost could wipe out the savings, especially if they rely on costly public charging. It’s no longer enough just to assume EVs are cheaper: people need to run the numbers carefully, look at how and where they charge, and decide based on total running costs, not just green credentials
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Scott Gallacher
Director at Rowley Turton
EVs will still make financial sense for anyone who can charge at home, even with the new 3p-a-mile levy. But for drivers reliant on expensive public charging, the sums may now tip the other way.

For company-car and salary-sacrifice users, the mileage charge barely dents the numbers — the tax benefits remain far larger — so EVs should still stack up for most.
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Luke James
Tax Director at Gravitate Accounting
HMRC’s latest advisory fuel rates (Dec 2025–Feb 2026) show petrol at 12p–22p per mile, diesel at 12p–18p, and home electricity at 7p, rising to 10p once the new 3p EV charge is added. That still sits just below the lowest petrol and diesel rates.

But wider costs matter. From April 2025, EVs lose road-tax exemption, adding a fixed charge. EVs also cost more to acquire or lease, with research indicating a 25–30% premium, and similar models aren’t always available across fuel types, making comparisons difficult.

For example, if a non-EV lease is £500 per month, the electric equivalent may cost about £1,650 more per year. Fuel savings of £200–£1,200 would be wiped out. A driver paying 22p per mile for diesel would need roughly 13,750 miles per year to break even; at 12p petrol, the figure is around 82,500 miles. And many EV leases exceed £500 per month, further reducing any financial case for switching.