Older motorists have been warned of a potential change to the way vehicles are taxed, which could see them pay more each year to be on the road.
With Prime Minister Sir Keir Starmer warning that the upcoming October Budget will be ‘painful’ for many Brits, some are predicting the way vehicles are taxed will change.
Officially known as Vehicle Excise Duty (VED), the current system of road tax charges drivers a figure that is based on either the engine size or emissions figures of the vehicle they drive.
However, some motoring experts have suggested that the Government could drop the system for a pay-per-mile alternative, which charges motorists a fee based on how far they travel.
As a result, all drivers could soon pay a very different figure compared to their current VED band, with older motorists possibly being charged hundreds more.
According to the care alarm provider Taking Care, drivers aged over 70 typically spend less time behind the wheel, covering an average of 1,665 miles per year.
Whilst it is unknown how much drivers will be charged if the proposed tax system is introduced, some experts have predicted a fee of 15p per mile.
If that is the case, the average fee that older drivers would need to pay would be £249.75 each year.
Compared to younger motorists, who typically travel up to 15,000 miles each year, older drivers would be charged less under a pay-per-mile road tax system.
However, with many over 70s owning smaller cars, often because they are easier to drive and more fuel efficient, a considerable number of older motorists will see a sharp increase in the cost of road tax.
Under the current system, owners of cars that make no more than 100g/km of carbon dioxide, such as the Fiat 500 TwinAir or a Kia Rio 1.1, pay a maximum of £195 per year. As a result, drivers owners may face an increase in tax of around £55.
Whilst many motorists are concerned about the cost of road tax rising in the October Budget, drivers could also see petrol and diesel prices rise.
In a bid to raise revenue, the Government may choose to end the current freeze on fuel duty, with some predicting it could rise from 53p to 63p per litre of petrol or diesel.
If this change goes ahead, the cost of filling up a car’s fuel tank could increase by £5, meaning those who visit the petrol station once per week may spend an extra £260.
