What's Changed for Drivers in 2025?
Your quick guide to the biggest motoring and car-tax changes of the year.
Ellie Dyer-Brown
Friday November 28 2025
8 min read
2025 brings a fresh batch of changes for motorists, from electric cars finally paying road tax to stricter rules on speeding, eyesight and number plates, plus new standards for public EV chargers and a national Fuel Finder scheme. This guide rounds up the key updates in one place so you can see at a glance what’s new, what’s stricter and what might cost more.
In a nutshell:
Fuel duty stays frozen until September 2026, with rates are due to climb back up in stages after that.
Electric cars started paying more tax from April 2025; the Budget has confirmed a new pay-per-mile system for electric and plug-in hybrid cars from 2028.
Fuel and charging costs get clearer, thanks to the new national Fuel Finder scheme and tougher reliability and pricing rules for public EV charge points.
Safety and speed rules tighten up, with wider 20mph limits in Scotland, more sophisticated roadside cameras and tougher expectations around older drivers’ eyesight.
Autumn Budget 2025
Electric and hybrid car owners will be most affected by the Autumn Budget, but all drivers will be impacted one way or another.
Fuel duty freeze
Fuel duty has already been frozen for 16 consecutive years and will remain frozen until September 2026. After that, the five-pence cut introduced in 2022 will be reversed in a “staggered approach”. Fuel duty will then be increased from April 2027 in line with the Retail Prices Index (RPI).
The OBR estimates that the 16-year freeze will have cost the Government £120 billion in lost income.
Mileage-based electric vehicle tax
EV drivers will have to pay a mileage-based charge (eVED) on battery electric and plug-in hybrid vehicles from April 2028. The confirmed charge between the 2028 and 2029 financial year is:
3p per mile for battery electric cars
1.5p per mile for plug-in hybrids
Trucks, motorcycles and electric vans will initially be exempt from the charge. It is forecast to raise £1.1 billion in tax income for the Treasury in the first year alone.
How will it work?
Drivers will have to self-report their mileage by estimating the distance they will travel each year and paying up-front or monthly via Direct Debit.
Actual annual mileage will be checked either using existing MOT tests or, for new cars, through a yearly check procedure that could be carried out at MOT centres. The exact process has not yet been confirmed.
‘Luxury Car Tax’ threshold increased for EVs
The chancellor is increasing incentives to purchase electric cars in a bid to mitigate the effect of the new mileage-based charge.
The threshold at which EVs are subject to the Expensive Car Supplement (ECS) will increase from £40,000 to £50,000 from April 2026.
The ECS currently applies to all vehicles with a list price above £40,000. It adds an extra £425 per year on top of the standard rate of tax for five years from the second year the car is registered.
Learn more about road tax here.
Electric Car Grant extended
The Electric Car Grant, which gives drivers up to £3,750 off eligible EVs, has received an additional £300 million in funding. It will continue until 2030.
EV charging cost review
The government also announced that it intends to review the cost of EV charging at public charge points, which has increased substantially in recent years.
A review will begin in Q1 of 2026 and be released in Q3. It will evaluate various contributors to the cost of public charging, including the impact of energy price increases, and consider ways to reduce the cost.
Approximately £200 million in additional funding will be provided to increase EV charging provision, enabling the UK to hit its target of 300,000 charge points by 2030.
From 2025, drivers should also start to see the impact of new regulations for public charge points. Rapid and ultra-rapid chargers are expected to meet minimum standards for reliability, transparent pricing, and contactless payment, with a 24/7 helpline for faults. Over time, more networks will also need to support “roaming” so drivers can use different charging providers without signing up for multiple apps.
No more ‘luxury cars’ on Motability
The Motability scheme allows disabled people, their families and their carers to lease a new car by using their qualifying Motability allowance. The Chancellor announced that there will be no more luxury cars offered on the scheme. Audi, BMW and Mercedes are among those being removed with immediate effect.
Vehicle tax, fuel and charges
Electric vehicle road tax
From 1st April 2025, EVs are no longer exempt from Vehicle Excise Duty (VED). New EVs pay £10 in the first year and £195 annually thereafter. EVs with a list price over £40,000 also face the Expensive Car Supplement for five years.
This will change to a pay-per-mile system from April 2028.
London Congestion Charge
As of December 25, 2025 (effective from 2nd January 2026), all vehicles, including electric and hydrogen-powered ones, must pay the £15 daily London Congestion Charge.
Fuel Finder scheme
A new government-backed "Fuel Finder" scheme is being rolled out, requiring all UK petrol stations to share real-time price changes, helping drivers find the cheapest fuel locally by the end of 2025.
Company car tax (BiK)
Benefit-in-Kind (BiK) tax rates for all company cars increased by 1% across all tax brackets from April 2025.
Driving tests and licensing
Driving test cancellations
As of 8th April 2025, learner drivers must give 10 full working days' notice (up from three) to change or cancel a car driving test without losing the fee.
Rural road focus in practical test
From November 24, 2025, driving examiners can use a wider variety of roads, including rural and high-speed routes, during the practical test to better reflect real-world driving conditions.
Digital driving licences
The rollout of digital driving licences, accessible via the GOV.UK Wallet, has begun, initially for military veterans, with broader availability planned for the future.
Older driver renewals
From August 2025, drivers over 70 renewing their license must confirm they have had an eyesight test within the last 12 months. Proposed reforms also include more frequent renewals and potentially mandatory medical assessments for those over 60 (from November 2025).
Road safety and commercial vehicles
Mandatory ADAS
Newly manufactured cars in the UK are now required to have advanced driver assistance systems (ADAS) as standard, including lane-keeping assistance and autonomous emergency braking.
Scotland's 20mph Limit
Scotland is rolling out a nationwide default speed limit of 20mph in urban and residential areas to improve safety.
HGV Safety Permits (London)
From 4th May 2025, all HGVs over 12 tonnes operating in Greater London must have a safety permit under the Transport for London's Direct Vision Standard (DVS).
AI Safety Cameras
Trials using AI technology to catch drivers using mobile phones or not wearing seat belts concluded in March 2025, with a potential national rollout of the technology in the future.
The best cars of 2025
What Car? Named Renault 5 (pictured above) Car of the Year 2025
The Kia EV3 was named World Car of the Year 2025
Auto Express Car of the Year 2025 was won by the Skoda Elroq
Year in review: key findings from FixMyCar's annual report
Our annual industry report is primarily aimed at mechanics and other automotive industry professionals. However, there are still a few key findings of interest to drivers.
Driver sentiment is shifting in favour of electric vehicles – The number of drivers who say their next purchase will be a petrol or diesel car has dropped by 40% over the last year.
Rising costs are causing drivers to be more cautious when booking repairs and maintenance – The number of drivers accepting quotes within 24 hours has declined by 2.4%.
The cost of repairing and maintaining EVs has risen – The average quote for an EV on FixMyCar has increased by 7% since last year.
Electric vehicles remain cheaper to service than combustion engine cars – EV owners pay 13.9% less on average.
If you'd like to download the full report, you can do so here.
Several important things have changed for drivers in 2025. EVs have been brought into the tax net, safety rules have tightened, and the cost of keeping a car on the road has continued to edge up. Looking ahead, staying informed and comparing fuel prices, charging, and repairs will be key as the next wave of tax and policy changes comes into view.
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Ellie is FixMyCar's Content Manager. She has over three years of experience writing about cars and regularly collaborates with automotive experts to provide trustworthy advice for drivers that is easy understand. Her work has been featured in Yahoo! Finance, iNews, The Daily Express and The Sun. She has a BA in English literature and an MA in creative writing from Durham University. Outside of work, Ellie follows F1 and eagerly awaits Ferrari's next era of dominance in the sport. She drives a Suzuki Swift.