Older Drivers Face Steep Car Tax Increases from 2025

2025-02-28

Drivers of older vehicles, including elderly motorists, are set to face significant car tax hikes from April 2025 as the government introduces sweeping changes to Vehicle Excise Duty (VED). The new rules, announced by Chancellor Rachel Reeves, aim to “widen the differentials” between electric vehicles (EVs) and internal combustion engine cars, with rates rising in line with the Retail Price Index (RPI).

Owners of vehicles registered between March 2001 and March 2017 will be particularly affected, as their tax is calculated based on fuel type and CO2 emissions. Previously, petrol or diesel cars emitting less than 100g of CO2 per kilometre were exempt from VED, but from April, they will be required to pay. Rates for higher-emission vehicles will also increase, with the most polluting cars (emitting over 255g/km) facing a £735 annual charge.

The changes have sparked outrage among older drivers, many of whom rely on their vehicles for essential travel. Richard Evans of webuyanycar noted that first-year VED rates for petrol and diesel cars emitting over 76g/km will double, while EVs will no longer enjoy a £0 first-year rate, instead rising to £10. Social media users have criticised the move, with one describing it as a “brutal Cost of Living blow” and another accusing the government of treating motorists as “cash cows.”

The new rules also mean that all motorists, including those over 70, will be liable for VED unless they qualify for an exemption. Standard rates for vehicles registered after 2017 will rise to £195 annually, while the most polluting vehicles could see first-year rates soar to £5,490. EV owners, meanwhile, may face an additional £425 Expensive Car Supplement if their vehicle is valued over £40,000.

The changes come as part of the government’s push to incentivise the switch to electric vehicles, but critics argue that the measures unfairly penalise older drivers and those on fixed incomes. With the new rates set to take effect in less than two months, millions of motorists are bracing for higher costs to keep their vehicles on the road.

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