Infrastructure + technology

Motorists believe ‘pay-per-mile’ driving will become policy

More than a third of motorists believe 'pay-per-mile' schemes will be applied in the UK, according to research by The Green Insurer.
March 5, 2025_
James Evison
highways

More than a third of motorists believe ‘pay-per-mile’ schemes will be applied in the UK, according to research by The Green Insurer.

The company’s study follows reports that the UK Government is considering such a scheme to charge motorists for each mile they drive, as a way to incentivise drivers to use vehicles more efficiently and reduce congestion.

It comes in response to a potential decline in Vehicle Excise Duty (VED) from the shift to battery-electric vehicles (BEV) from internal combustion engine (ICE) vehicles.

More than a third (35%) of drivers believe that pay-per-mile is a “strong possibility’ to be introduced in the five years, despite it not being official government policy.

But around 41% also believe it is “highly unlikely” to be brought in, and a quarter (24%) are unsure.

The study also indicates a slight increase in support for such a payment model, with around one in five (20%) saying they would support it, which up from 13% six months ago.

Opposition though remains strong with half (48%) stating they would not support such a pricing model and almost a third (31%) saying they would support it in urban areas but not rural locations or those with limited public transport.

Paul Baxter, CEO, The Green Insurer, said:

“While we have seen a small shift in support for road pricing models, it is clear that drivers still have concerns and any potential implementation will need to be carefully considered, with transparency on costs and benefits to drivers.

“Before the implementation of any pay-per-mile pricing scheme, we hope that the Government may also consider other measures that will incentivise and reward people for eco-responsible motoring, whether that is through financial incentives, such as tax rebates to reduced insurance premiums for electric vehicles, or improving and supporting the existing infrastructure of faster chargers across the country.”

Image from Shutterstock

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