Road pricing: All you need to know about the road tax alternative

What is road pricing? Will it be implemented across the UK?

Originally proposed back in 2005, this new form of road pricing is an alternative solution to road tax which would see the amount you pay dependent on how much you drive.

This game-changing new system would make it fairer for those who hardly drive. But how will it work?

And more importantly, will it work at all?

How will the new structure work?

This new structure of road pricing would see all vehicles fitted with a GPS device that would measure variables such as time, location and type of vehicle.

These variables would then be recorded, and drivers would receive notification of how much tax they owe each year – most likely via an app or in-car device.

The pay-per-mile system could also be linked to a nationwide Automatic Number Plate Recognition (ANPR) network – similar to the system currently used for the London Congestion Charge.

This proposal isn't exactly new either. It was first put forward by Alistair Darling in 2005.

It would make driving more accessible and fairer.

Just think of elderly drivers. They don't need to drive far or often, but having a car is still necessary for them. The one-size-fits-all system that is our current road tax pricing can be pretty expensive, making owning a car less accessible.

What is road pricing?

Road pricing charges drivers based on how much they use the roads. Drive more, pay more.

It also factors in where and when you drive. Rush hour in central London? You'll pay more than a Sunday drive through the countryside.

There are three types already in use across the UK:

• Cordon pricing: pay to drive within a specific area, like the Ultra Low Emission Zone (ULEZ)
• Congestion pricing: charges for busy areas at peak times, like London's Congestion Charge
• Toll pricing: fees for specific roads like motorways and bridges

Why is road pricing being considered?

The government has a problem. As more people switch to electric cars, fuel duty revenue is plummeting.

With petrol and diesel cars being phased out by 2030, that revenue gap is only getting bigger.

Road pricing would create a fairer system. Everyone pays based on their actual road use, not a blanket annual fee.

What would this mean for drivers?

Low-mileage drivers could save money. If you only drive to the shops once a week, you'd likely pay less than you do now.

High-mileage drivers might face bigger bills. Whether that's commuting, family trips, or weekend adventures, more miles means more costs.

Location and timing matter too. Expect higher charges for city centres during rush hour, and lower fees for quiet country roads.

What are the benefits of road pricing?

Some experts argue that usage-based pricing is fairer than a flat tax. The Transport Select Committee (TSC) report states that any scheme shouldn't make drivers "pay any more than they do currently".

Where road pricing already exists, congestion has dropped dramatically. Just six months after London's Congestion Charge launched, 60,000 fewer vehicles were entering the central zone daily.

The biggest win could be for the environment. Less congestion means less pollution and better air quality – cars burn more fuel when they're constantly stopping and starting.

When might road pricing be introduced?

While road pricing has been on the government's radar for nearly two decades, there's still no concrete timeline for its introduction.

The technology exists, but the political will and public acceptance are still works in progress. Any implementation would likely be gradual, potentially starting with specific areas or vehicle types before rolling it out nationwide.

The road ahead

Road pricing represents a significant shift in how we think about motoring costs. Like any major change, it'll have its champions and critics.

What's certain is that as our roads get busier and our cars get cleaner, the way we fund our transport infrastructure will need to evolve too.

Whether road pricing is the answer remains to be seen – but it's a conversation that's not going away anytime soon.