The Chancellor’s new pay-per-mile road pricing scheme will rake in millions from people visiting loved ones in future Christmas holidays.

Millions of people jumped in the car to reunite with loved ones over the Christmas break. But the festive drive is set to become a major moneyspinner for the Treasury in years to come, thanks to Labour’s road-pricing plan. New analysis shows that the government’s pay-per-mile scheme is set to cost drivers £189 million over future Christmas holidays.

It follows Chancellor Rachel Reeves’s announcement of a new per-mile charge for electric and plug-in hybrid cars, coming into force from April 2028. At the same time, the Government plans to ban the sale of new petrol and diesel cars from 2030, ensuring increasing numbers of motorists will pay the fee.

According to Kwik Fit, UK drivers travel a collective 6.3 billion miles over the Christmas period, equivalent to 169 miles each.

With the government’s introduction of a pay-per-mile driving scheme at 3p per mile, this means driving home for Christmas will cost UK drivers £189million in future years.

Conservatives said impact would be felt most by working people who rely on their cars to see family, juggle childcare, or travel long distances during the holidays.

Shadow Transport Secretary Richard Holden said: “At a time when families should be planning Christmas journeys and looking forward to seeing loved ones, Rachel Reeves is stuffing drivers’ stockings with yet another tax. On top of raising fuel duty by 5p per litre, Labour are ramming through a half-baked pay-per-mile scheme that will make festive travel more expensive.

“Labour promised there would be no pay-per-mile tax, then wrapped one up to kick in from 2028 and hoped nobody would spot it under the tree. It’s rushed, it’s sloppy, and it’s nothing more than a raid on working people to pay for their welfare bonanza.”

Ministers said as recently as September that the Government had “no plans” to introduce road pricing. However the Government says a charge is needed because electric vehicles contribute to congestion and wear and tear on the roads but are not charged any equivalent to fuel duty.