The UK is considering a new 15p per mile pay-per-mile car tax that could significantly impact older drivers, particularly those aged 70 and over, who might pay around £249 annually.
Drivers Aged 50 or Over Could Face £1,061 Charge Under New Pay-Per-Mile Car Tax Bands
By Lydia Amazouz
Published on 24 September 2024 12:00
A newly proposed 15p per mile pay-per-mile car tax could see older drivers, especially those aged 70 and over, paying around £249, while drivers in their 50s might face charges of up to £1,000.
Pay-Per-Mile Tax Could Cost Older Drivers £1,061 Annually
On average, drivers over 70 drive 1,665 miles a year, which is 28% less than the average for all age groups. Car insurance premiums typically decrease with age but tend to rise again after the age of 75, as reported by BirminghamLive.
Additionally, once drivers turn 70, they must renew their licence with the DVLA every three years. Older drivers with children often cover more miles due to family responsibilities, such as driving their kids to school, taking them to parties, or going on family outings.
On top of the usual work commute, these extra trips can significantly increase the number of miles driven each year. According to Statista, drivers aged 50 to 59 average 6,774 miles annually, which could lead to a hefty cost of £1,061.
Impact of Proposed Pay-Per-Mile Tax on UK Motorists
Shift Driving School highlighted the potential impact of the new tax, stating: "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 moves towards a future with more electric vehicles, the proposed pay-per-mile road tax is set to affect millions of motorists. "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."