New pay-per-mile car tax bands mean drivers will pay £120 for 'round trips'

A new pay-per-mile car tax system will cost drivers who are "driving home for Christmas", it has been warned. With the Labour Party government's new pay-per-mile tax law set to be introduced soon, families across the UK are bracing for added costs to their holiday travel.

GM Direct Hire found seven in 10 say the new tax could impact their travel plans this Christmas. The tax, aimed at reducing congestion and lowering carbon emissions, could see drivers paying up to 15p per mile for long-distance journeys – a figure that could significantly affect the cost of driving home for the holidays.

For a family driving from London to Manchester (a 200-mile journey one way), the round trip would total 400 miles. With the pay-per-mile rate of 15p per mile, families could face an additional cost of £60 in tax for the journey. For those traveling further, such as from London to Edinburgh (a 400-mile journey), the tax could increase to £120 for the round trip alone.

READ MORE OVO warns 'affected' energy customers 'we will contact you directly'

Majid Ismailzada, Marketing Director & Motoring Expert at GM Direct Hire , commented on the findings: "It’s clear that many families are concerned about the impact of this new tax. With the cost of fuel and other expenses rising, the added burden of a pay-per-mile tax could make long-distance travel over the holidays less appealing for many."

Amy Harker lives in Manchester with her 4-year-old son. She expressed concern over the impact of the new pay-per-mile tax, especially during the Christmas season. "As a single mother, every penny counts, and with rising living costs, adding an extra £60 just for driving home to see family makes it difficult to justify the trip," Amy said.

"I’m now reconsidering our travel plans this year, as the tax alone could take away from gifts or other essentials for my son." For families like Amy's, the new tax could mean tough choices during the holiday season.