The 2025 Budget landed with a thud for electric vehicle drivers. After years of friendly tax treatment, electric vehicles (EVs) are now stepping into the same grown-up trousers as petrol and diesel cars. Vehicle Excise Duty (VED) is back. The luxury car supplement has arrived. And there’s a new pay-per-mile charge pencilled in for 2028.
So it’s fair that people are pausing. We’re seeing the same question pop up in group chats, forums, and kitchen-table chats across the UK.
Is an EV still worth it? Short answer: yes. Longer answer: it depends how you charge, when you charge, and whether you make your EV work with your home, not against it.
Let’s slow the noise, walk through the changes, and share why smart home charging still keeps electric driving firmly in the money.
Understanding the new electric vehicle tax landscape.
Change can be a bit of a maze, so let’s map out exactly what’s happening and when. Firstly, VED is back. From 1 April 2025, EVs will start contributing to the road tax pot.
New EVs: If you register a shiny new EV after 1 April 2025, you’ll pay a small first-year rate of £10. From the second year onwards, it moves to the standard annual rate, currently £195.
Existing EVs: If your car was registered between April 2017 and March 2025, you’ll also start paying that £195 standard rate from your first renewal after the deadline. The Expensive Car Supplement: Previously, EVs were exempt from the Expensive Car Supplement. Now, if your new electric car has a list price over £50,000, there’s an extra £425 a year to pay for the first five years (starting from year two).
None of this is subtle. The message is clear: electric cars are now part of the mainstream, and the tax system is catching up.
Looking ahead to the pay-per-mile charge.
The other change causing raised eyebrows is road pricing. The government has outlined plans for a mileage-based road charging scheme, expected from 2028. It’s designed to reflect the fact that fuel duty will keep shrinking as more drivers go electric.
What’s currently proposed:
Around 3p per mile for pure EVs.
Around 1.5p per mile for plug-in hybrids.
This isn’t live yet, and details may change. But it’s enough to spark concern that running costs could creep up. But, it’s not all "pay-pay-pay," though. The Budget also tucked in some goodies, like extra funding for public charging infrastructure and extensions to the Electric Car Grant, ensuring the network keeps growing as fast as we do.
Offsetting the EV tax with smart charging.
This is where the conversation often misses the point. Taxes matter, but fuel costs matter more. And this is where EVs still quietly win, especially when charged at home. A typical petrol or diesel car costs roughly 15p to 25p per mile in fuel alone, depending on driving style, engine size, and pump prices.
Now let’s look at electric driving. Charging an EV at home on a smart tariff can bring running costs down to around 2p to 3p per mile, depending on the car’s efficiency and the rate you pay for electricity.
Even if we factor in the proposed 3p-per-mile road charge in 2028, the maths still lands comfortably in EV territory.
EV fuel cost: ~3p per mile.
Future road charge: ~3p per mile.
Total: ~6p per mile.
That’s still well below the average petrol car. So the real story isn’t that EVs suddenly became expensive. It’s that how you charge now matters more than ever. Cheap, planned, overnight charging is doing the heavy lifting.
Maximising savings with Next Drive Smart.
To get those "pennies-per-mile" figures, you need the right tools. That’s where our Next Drive Smart tariff comes in. It’s designed specifically for the EV community to make the transition as smooth as possible.
Off-peak electricity is available at lower rates, such as around 6.5p per kWh, depending on your region and tariff version. Charging happens automatically during those cheapest hours. You set when the car needs to be ready, not when it needs to charge.
The “smart” part matters. Through the Next Home app, the system talks to compatible EVs and chargers, scheduling charging in the lowest-cost slots without you needing to micromanage plugs and timers.
The result is predictable, repeatable savings. Not one-off wins, but a routine that quietly offsets rising taxes in the background. It doesn’t make taxes disappear. It just makes them easier to live with.
Why a smart charger makes all the difference.
To unlock those lowest rates and automated scheduling, a smart home EV charger is essential. Public charging has its place, but it’s usually the most expensive way to power an EV. Prices vary widely, availability can be patchy, and costs are harder to control.
A smart charger at home changes the rhythm:
Guaranteed overnight access.
Consistent pricing.
No queues, apps, or guesswork.
We supply and install Wi-Fi enabled smart chargers, including models like the Ohme ePod. They’re designed to work smoothly with smart tariffs and manage charging around low-cost windows.
It’s not about chasing perfection. It’s about setting up a system that quietly saves money while you sleep.
The bigger picture on value.
It’s easy to focus on what’s been taken away. Free VED. Zero road tax. That early-days feeling of being rewarded just for plugging in. But value isn’t frozen in time. It shifts.
EVs are still cheaper to fuel. They still cost less to maintain, with fewer moving parts and no oil changes. And when paired with smart home charging, they remain resilient against rising costs.
The 2025 Budget didn’t end the EV story. It just nudged it into its next chapter, one where the savings come from everyday choices rather than blanket exemptions.
So, is an EV still worth it?
For most drivers who can charge at home, yes. We’re the first to admit that the Budget changes take away some of the "free ride" feelings we’ve enjoyed for the last few years. It’s a transition, and transitions can be a bit bumpy. But the core reason to go electric hasn’t changed. The economic engine of the EV, the sheer efficiency and the massive savings over petrol, is still very much under the bonnet.
Don't let the headlines stall your plans. The path to low-cost, future-proof driving is still wide open. Let’s get you set up with a smart home EV charger and our Next Drive Smart tariff so you can start saving today.