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Motorists between the ages of 45 and 60 are among one of the most affected by April’s car tax changes, according to experts. Analysis from Go.Compare car insurance stressed Gen X road users will feel the sting of new Vehicle Excise Duty (VED) rises which came into effect on April 1, 2025.
New data from the group found Gen X individuals, usually born between 1965 and 1980, could see bills rise by a whopping £28,856,779. This is £11million less than the baby boomer population born between (1946-1964) – who will be charged around £40,505,806 more in first-year fees. Part of the issue is because older drivers do not tend to own brand-new electric cars which are still handed considerable discounts compared to petrol and diesel drivers.
Go.Compare’s survey found just 9% of Gen X drive electric or hybrid models, compared to 11% of millennials and 6% of baby boomers.
Tom Banks, car insurance expert at Go.Compare warned the type of cars openers have the jets for is vital for how much they will eventually pay.
Tom 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.”
First-year rates are one of the major headline updates this Spring with fees set to double for almost all petrol and diesel owners.
The most polluting cars emitting over 255g/km of CO2 will face the biggest hike with total costs up from £2,745 to £5,490 per annum.
Slightly cleaner models emitting between 226 and 255g/km also face hefty rises with bills jumping from £2,340 to £4,680 from April 1.
These first-year rates only apply for 12 months before charges switch to the standard VED fee which currently sits at £195.
However, these costs are way higher than many families will be able ti afford in a major blow for those watching their wallets.
Tom added: “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.”
