Octopus EV to absorb new EV road tax for existing lease customers

• Octopus EV to cover pay-per-mile tax for 20,000 existing customers
• Octopus commits to reducing admin for the new tax for drivers
• Move rewards early adopters and keeps EV driving simple and affordable

London, 17th December 2025 – Octopus Electric Vehicles (‘Octopus EV’) has announced it will cover the new pay-per-mile tax for all existing customers – meaning no extra charges for drivers who have already made the switch to electric.

The tax, which was announced in the Autumn Budget 2025, will introduce a 3p per-mile charge for electric vehicles. It is supposed to come into effect in April 2028 and is designed to replace fuel-duty revenue as more drivers move away from petrol and diesel.

Customers currently on an Octopus EV lease, who completed an order by 28th November, will be fully protected from the new charge until the end of their lease. Octopus EV says nearly 20,000 drivers are set to benefit, ensuring no surprise costs undermine their move to cleaner transport. 

“EV drivers should contribute to road upkeep, but fairly and at the right time. Until the details are finalised, we want our existing customers to know they won’t be affected. They made the switch early, and we’re rewarding that commitment by absorbing the new tax and keeping their costs steady,” said Gurjeet Grewal, CEO of Octopus Electric Vehicles.

Octopus EV, the largest EV-only leasing company in the UK, also confirmed it is closely monitoring the government’s consultation process on how the tax will work in practice, with a strong focus on keeping things simple for drivers.

The company has committed to ensuring that any new admin caused by the tax changes will be kept to a minimum, using its technology and operational systems to deliver the same seamless, hassle-free experience customers expect.

“Our customers shouldn’t have to wade through new forms or fiddle with extra mileage reports,” added Gurjeet. “If there’s admin to be done, we’ll make it as easy as possible. We’ll be contributing to the government’s consultations on their new tax rules to help ensure they’re fair and easy for drivers to navigate.”

Commenting more broadly on the support announced for electric cars in the Budget, Gurjeet added: “The government has sent a clear signal that EVs remain a UK priority. Extending the Electric Car Grant and investing further in public charging will give drivers the confidence to make the switch. As momentum stalls elsewhere in Europe, the UK now has a real opportunity to lead the way on cheaper, cleaner driving.”

Octopus Electric Vehicles continues to help drivers, businesses, and salary sacrifice customers go electric, offering straightforward leasing, game-changing EV tariffs and access to its public charging roaming service, Octopus Electroverse.

As policy evolves, the company says its focus remains the same: keep electric driving simple, affordable, and irresistible.

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Press Contact

Octopus Energy:

Sam Salehi

sam.salehi@octoenergy.com

0204 5308 369

Octopus Electric Vehicles:

Octopus Electric Vehicles, part of the Octopus Energy Group, was launched in 2018 to make it easy for drivers to make the switch to clean, electric transport. With over 133 electric cars now available from 30 different brands, Octopus Electric Vehicles’ team provides everything drivers need to take the road in a new EV.

Offering an all-in-one service, Octopus lease the cars, install charge points, provide specialist EV energy tariffs, and offer access to over 1.2 million public charge points globally via Octopus Electroverse - all with a 4.8* rating on Trustpilot.

Octopus Electric Vehicles also specialises in salary sacrifice schemes – an employee benefit that makes driving a brand new electric car even cheaper than the petrol or diesel equivalent through tax savings. Placing customer experience first, Octopus Electric Vehicles has designed the scheme to be simple for an employer to set up and run, and support them at every step. Drivers can typically save between 30-40% every month on the cost of their EV; and at zero-cost for an employer to set up, it’s great for their team, their hiring and retention, and for their sustainability goals.

More information can be found at www.octopusev.com