Hybrid Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 March to Question 118384 on Hybrid Vehicles: Excise Duties, whether she has considered the potential merits of allowing those PHEV drivers who (a) opt in to doing so and (b) have vehicles with the technical means to record miles driven in electric or petrol mode, to submit accurate returns to allow eVED to be paid only on those miles not already subject to fuel duty.
Answered by Dan Tomlinson
As announced at Budget 2025, plug-in hybrid vehicles (PHEVs) will be subject to a reduced electric Vehicle Excise Duty rate of 1.5 pence per mile upon its introduction in April 2028 – half the rate that will apply to fully electric cars. This approach recognises that PHEVs have the capacity to drive in either electric or petrol mode and strikes the right balance between fairness, protecting motorists’ privacy and minimising administrative burdens on motorists.
The government recognises that the large majority of EVs and PHEVs have in-built vehicle telematics, which monitor various driving activities and are viewable by drivers, vehicle manufacturers, or permitted third parties in some cases.
The government will not mandate use of these telematics for administering eVED; however, it welcomed views in the consultation on how various types of technologies could be used on an opt-in basis in future to simplify the system and reduce administrative burdens on motorists and businesses.
The consultation closed on 18 March 2026. The Government will publish a response in due course.
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