Motorists with the keys to one type of vehicle will face another price rise just months after a "substantial" increase in bills. Owners of low-emission vehicles, such as plug-in hybrid cars, will see Vehicle Excise Duty (VED) fees rise from April 1, 2026, in the second price rise in a matter of years.
Before 2025, owners of brand-new low-emission models paid hardly anything to use the roads because officials were encouraging motorists to make the switch away from petrol and diesel machines. However, VED costs soared last year as part of Labour’s massive overhaul of motoring taxes and costs are set to jump again in 2026.
Parkers explained: “Low-emission cars (including plug-in hybrids) face a substantial price rise. Cars in the 1-50g/km of CO2 band used to pay £10, and now face a sizeable jump.”
Last Spring, brand-new owners of low-emission models saw first-year prices rise by £100 to £110 per annum. This year, increases are less dramatic, with Pete Barden predicting that annual costs will increase to £115 per year.
However, it still means those securing the keys to brand new models will have seen prices rise by £105 in a little over one calendar year. Meanwhile, owners of vehicles emitting 51-76g/km of CO2 will also notice a staggering rise in costs.
Vehicles in this category used to pay £30 before costs jumped to £130 in 2025. Predictions from Pete Barden suggest that fees for these owners will likely rise to £135 in 2026 as part of the latest incremental rise.
VED fees change every April in line with Retail Price Index (RPI) inflation, meaning rises were always expected. Although electric car owners now pay charges, fees are a lot lower than polluting vehicles.
Those emitting 0g/km of CO2 pay just £10 to use the road in year one before switching to the standard VED rate.
Parkers added: “This is a strong indication from the government that they’re backing EVs and any emission-producing vehicle will be taxed more heavily going forward.”
