Octopus EV announced it’s covering the incoming 3p pay-per-mile EV tax for existing customers. The move protects drivers who’ve already switched to electric from additional charges when the levy takes effect.
The government revealed the tax during the Autumn Budget – part of what many called mixed messages toward EV adoption. The 3p-per-mile charge starts in April 2028 and replaces fuel duty revenue as more UK drivers go electric.
Electric car sales have surged nationwide. EVs captured more than 50% of November’s new car market and 44.4% of second-hand sales.
More than 20,000 drivers will benefit from Octopus EV’s decision. Customers who completed vehicle orders before November 28 get protection from the tax until their lease ends.
“EV drivers should contribute to road upkeep, but fairly and at the right time,” said Octopus EV CEO Gurjeet Grewal. “Until the details are finalised, we want our existing customers to know they won’t be affected. They made the switch early, and we’re rewarding that commitment by absorbing the new tax and keeping their costs steady.”
Implementation Questions Remain
Questions about how the 3p per mile tax will be implemented have emerged following the announcement. Octopus EV says it’ll use a tech-focused approach to minimize paperwork.
“Our customers shouldn’t have to wade through new forms or fiddle with extra mileage reports,” Grewal added.
The company plans to handle administrative tasks and contribute to government consultations on the new tax rules. The goal is ensuring the system remains fair and easy for drivers to navigate.
UK’s EV Leadership Opportunity
The European Union recently backtracked on ending petrol and diesel car sales by 2035. Grewal sees this as the UK’s chance to lead the EV transition.
“The government has sent a clear signal that EVs remain a UK priority,” he said. “Extending the Electric Car Grant and investing further in public charging will give drivers the confidence to make the switch.”
The UK now has a real opportunity to demonstrate successful EV adoption while momentum stalls elsewhere in Europe. Grewal believes the country can lead on cheaper, cleaner driving solutions.
The announcement comes as the EV industry navigates policy changes and market shifts across Europe.
