Older drivers born before 1964 among those impacted by new car rules

Older drivers born in specific years could be among the most affected by the new Vehicle Excise Duty (VED) car tax fees under the Labour Party government.

Elderly drivers born in these years are among those affected by 2025 car tax changes. Older drivers born in specific years could be among the most affected by the new Vehicle Excise Duty (VED) car tax fees under the Labour Party government.

According to Go.Compare, baby boomers could pay an extra £40.5million in VED fees as a result of the changes. Baby boomers are considered to be anyone born between 1946 and 1964 and would be between 61 and 79 years old today.

Go.Compare said: “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.

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“Just 6% of baby boomers drive either a battery electric or hybrid electric car.” From April 1, 2025, the tax exemption on all electric vehicles in the UK ended, with drivers paying the same flat rate of £195 per year as petrol, diesel or hybrid car owners.

Tom Banks, car insurance expert at Go.Compare said: “Unfortunately, some groups will be worse impacted by the rising VED rates than others, which is mainly down to the type of cars they tend to buy.”

New EV buyers will also need to pay for their road tax, with all zero-emission models now subject to a £10 charge for the first year it is registered on the UK's roads.

However, if the new electric model has a retail price of more than £40,000, the owner will also be subject to the expensive car supplement of £425 from years two to six, increasing the total charge to £620.

Electric cars are not the only type of vehicle that will be affected by the DVLA's changes. New car buyers choosing any model are likely to pay more for their tax.

The vehicle excise duty (VED) charge applied to new models is based on the amount of carbon dioxide the model produces, with all rates increasing in a bid to encourage more motorists to choose a cleaner car.

Plug-in hybrid models will see a £100 tax increase from April 1, 2025, with the rate buyers are charged rising to £110 for the first year.