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Is Pay-Per-Mile Coming to UK Roads?

By Paul Baxter, 14th March 2025

The way we pay for using UK roads could be set for change according to over a third of motorists who responded to our recent research. According to the findings, 35% of drivers think the Government may introduce a pay-per-mile road pricing system within the next five years.

While there has been no official indication that such a model is in the works, the concept has been widely debated as a potential solution to cutting congestion, reducing carbon emissions, and encouraging more efficient road use. Instead of a flat road tax or fuel duty, pay-per-mile schemes would charge drivers based on the distance they travel, with possible variations depending on vehicle type, location, and time of day.

Support for pay-per-mile remains modest but appears to be increase, with one in five (20%) drivers now supporting such schemes being introduced on all UK roads compared with just 13% from six months ago. However, staunch opposition remains strong with nearly half (48%) of those surveyed saying they would not support pay-per-mile charges in any form.

The middle ground emerging for some motorists is whether the pay-per-mile scheme may work in urban areas, with almost a third (31%) of drivers saying they would support it in towns or cities, where congestion and pollution are higher, but not in rural regions where public transport options are limited.

It’s fair to say that the British public continue to have mixed opinions on road pricing. While we have seen a small shift in support for road pricing models, many drivers still have concerns about what it will mean to them. Any potential roll-out will need to be carefully considered, with transparency on costs and benefits to motorists.

Instead of introducing controversial road charges, there are a number of other options to incentivise eco-friendly driving that could be explored. These include financial incentives, such as tax rebates or reduced insurance premiums for electric vehicle owners, as well as continued investment in faster EV charging infrastructure across the country.

With the UK shifting towards greener transport solutions, discussions around road pricing, fuel taxation, and incentives for electric vehicles are likely to continue. Whether drivers will ultimately accept the introduction of pay-per-mile schemes will depend on how such plans are structured and whether they are complemented by affordable and reliable public transport.

About the author

Paul Baxter - CEO, The Green Insurer

Paul Baxter is the Chief Executive Officer of The Green Insurer. With over 25 years of experience in the insurance industry, Paul has held senior leadership positions at Marmalade Insurance, Chaucer Insurance Service, Tesco Insurance, and Direct Line, shaping the future of motor insurance in the UK.

With a strong track record in insurance, his expertise spans digital transformation, insurance innovation, and customer-centric solutions. Passionate about shaping a future that is not only safer for drivers but also better for the planet and all people. Paul is committed to giving customers a genuine option to buy green insurance easily.

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