Proposed pay-per-mile car tax could cost some motorists over £1,000 annually

It could see older drivers aged 70 or over charged £249 a year, but one group will pay a lot more

A potential new government mandate for a 15p per mile car tax, if implemented, could hit older motorists hard. Drivers over 70 years old could begin at £249 due to their average annual mileage of 1,665 miles, while those in their 50s may face charges around £1k.

According to Statista, the average yearly distance covered by drivers between 50 and 59 is 6,774 miles, which could see costs escalate to £1,061. Insurance premiums for cars generally decrease as drivers get older until they reach 75 when they begin to rise again. Every driver has to reapply for their licence when they turn 70 and renew it every three years thereafter.

Driving in later years often involves family responsibilities such as ferrying children to school or social events, adding on to other driving commitments like commuting, which can significantly increase annual mileage. Shift Driving School commented: "If implemented, this pay-per-mile tax would mark a significant change in how road usage is taxed in the UK.

It represents a shift from taxing fuel consumption to taxing road usage directly. While this could create a more sustainable revenue model in an era of electric vehicles, it also introduces new challenges in ensuring that the tax system remains fair and equitable," reports Birmingham Live.

"As the UK navigates the transition to electric vehicles, the proposed pay-per-mile road tax is a critical issue that will impact millions of drivers. The balance between environmental responsibility and fair taxation will be at the heart of the debate as the Labour Party prepares to unveil its plans in the upcoming Autumn Budget."