Older drivers among those hit by new 2025 car tax | Tech News
Older drivers are among those “most impacted” by new 2025 car tax adjustments, in accordance with main consultants. Elderly street customers are anticipated to pay thousands and thousands of kilos more in Vehicle Excise Duty (VED) charges as a outcome of widespread updates launched earlier this yr.
VED charges had been overhauled in 2025 with rises in annual charges for nearly each petrol, diesel and electric car house owners launched back in April. Labour’s plans more closely affected extremely polluting fashions with large will increase in first-year VED charges on petrol and diesel machines. The updates have led consultants to warn that child boomers are most at risk, with many street customers on this demographic normally choosing inner combustion fashions as an alternative of EVs.
Baby boomers are normally outlined as people born post World War II, so typically between 1946 and 1964. It means consultants imagine the updates are prone to affect street customers between the ages of 61 and 79 more than another age vary.
Go.Compare mentioned: “Baby boomers will be the most impacted of any generation for the same reason. In total, it’s estimated that baby boomers will be taxed an extra £40.5 million as a result of the changes. Just 6% of baby boomers drive either a battery electric or hybrid electric car.”
In distinction, Gen Z, those born since 1997, are prone to solely pay £11.3 million underneath the new charges. This is as a result of this age group are a lot more inclined to buy electric autos, that are charged at a a lot decrease VED tax fee.
Despite this, consultants warn no one has actually escaped from will increase in 2025 in a blow to cash-strapped street customers throughout the nation.
Tom Banks, car insurance coverage skilled at Go.Compare confused that “some groups will be worse impacted by rising VED rates than others”. He added that this was primarily set to be pushed by “the type of cars they tend to buy.”
Tom defined: “But crucially, the increased rates mean all new car buyers will pay more this year. To cut these costs, go for a low-emissions car at the showroom if you can, as that will place you in the cheaper tax bands. Or, consider getting a ‘nearly new’ vehicle instead. This will give you that new car feeling for a fraction of the price, and allow you to dodge the increased tax.”
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