Treasury makes new pay-per-mile admission

The Treasury has admitted that "telematics systems "could be used as part of their new electric vehicle pay-per-mile car tax charge. In their latest consultation document ahead of the introduction of the Electric Vehicle Excise Duty (eVED) fee, the Treasury said they would "welcome views" on how the technology could be adopted.

Telematics tools are small devices that can collect a whole host of vehicle data, including real-time GPS location, trip history and speed. Telematics devices to track pay-per-mile fees would likely raise controversy, with privacy concerns likely to come to the forefront.

However, officials have confirmed that telematics devices would "only ever be optional" with motorists having to "opt-in" to use them. It means at this stage, the Treasury is not considering a strict rule where telematics devices would be mandatory.

The Treasury consultation document reads: "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 welcomes views 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.

"Protecting motorists' privacy as part of eVED is a priority for the Government, so any potential technology-based solutions considered in future will only ever be optional."

The new eVED fee will be introduced in 2028 as a measure to offset the loss of revenue from petrol and diesel fuel duty. Fully electric models will be charged 3p per mile, while plug-in hybrid vehicles will pay a reduced rate of 1.5p per mile

Instead of tracking using technology, motorists will enter their current mileage reading and then estimate their mileage for the year ahead. Mileage data from cars will then be collected at annual MOTs, with vehicles under three years old to attend an "additional mileage check at an accredited provider".

The eVED consultation added: "The Government will consider options to strengthen the approach to capturing mileages at MOT (and for the period prior to the first MOT).

"This will include considering methods accredited providers could use to more efficiently and reliably extract data from cars, reducing scope for human error from writing down numbers from the vehicle display."