Skip advert
Advertisement

UK motorists save £750 a year with a plug-in car

New figures by Go Ultra Low campaign reveal the potential savings from choosing plug-in hybrids or electric vehicles

Low emissions zone

UK motorists stand to save £750 per year in tax and fuel costs by switching to ultra-low emissions vehicles (ULEVs), a new study by the Go Ultra Low campaign has revealed.

The figures show the average cost to fuel a petrol or diesel car is around 12-pence per mile, while an equivalent cost for ultra-low emissions vehicles (vehicles that emit less than 75g/km of CO2) is just two-pence per mile. Currently all ULEVs are either plug-in hybrids or fully electric cars.

Advertisement - Article continues below

New VED road tax rules explained

If all UK motorists took advantage of these cost cuts, the overall savings from ULEVs would accumulate to £24.5 billion a year across the nation’s 32.6 million cars.  

Hetal Shah, Head of the Go Ultra Low campaign said: “With fuel costs from just two-pence per mile, no road tax, no congestion charge and free parking in many locations, electric cars certainly present a compelling proposition. Put simply: the more you drive, the more you save.”

Costs for ultra-low emissions vehicles are on the up

However, these savings won’t last forever, as RAC spokesman Simon Williams told Auto Express: “While the cost-per-mile benefits of ultra-low emission vehicles are plain to see, the Government is actually reducing or removing many of the financial incentives to encourage their take-up in the first place – which will be frustrating for anyone thinking of buying a new car.”

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Auto Express previously highlighted the financial toll the growing uptake of electric vehicles has on revenues lost from the fuel excise duty – an estimated loss of £5 billion per year in 2030.

To account for the growing hole in the government's budget, the revised VED car tax bands from 1 April 2017 onwards will begin to tax all ultra-low emission vehicles, with only zero-emissions vehicles escaping the tax man's wrath.

Ahead of announcing the revised five-year and £200 million plug-in car grant later this year, the government has also altered its categorisation of ultra-low emissions vehicles. A new three-category system replaces the 75g CO2/km cut-off.

  • Category 1: CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles
  • Category 2: CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles
  • Category 3: CO2 emissions of 50-75g/km and a zero emission range of at least 20 miles 

These new categories are expected to be a cornerstone in the distribution of the new plug-in car grant.

Do you think the Government is doing enough to incentivise motorists to switch to low emissions vehicles? Let us know in the comments section below...  

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k
Kia PV5 Passenger - show front

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k

New entry into the electric people carrier market undercuts the VW ID. Buzz by a significant margin
News
29 Apr 2025
Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen
Ford Fiesta exclusive image

Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen

The Ford Fiesta could be coming back from the dead, and our exclusive image previews how it might look
News
2 May 2025
New 2025 Kia PV5 van starts from a tempting £22,645
Kia PV5 Cargo on display at Commercial Vehicle Show - front 3/4

New 2025 Kia PV5 van starts from a tempting £22,645

All-new entry into the van market promises competitive pricing and comes with a range of up to 247 miles
News
30 Apr 2025