The Heavy Goods Vehicle (HGV) Levy and Vehicle Excise Duty (VED) rates are set to increase from 1 April 2025, in line with the Retail Price Index (RPI), following an announcement made by the UK government in autumn 2024.
From April 2025, the HGV Levy will be adjusted based on the latest RPI measure, which reflects inflation. The RPI as of early 2025 stands at approximately 3.6%, meaning that levy rates will rise accordingly.
For example, under the revised rates:
- A Euro VI HGV over 38 tonnes, currently paying £576 annually, will see an increase of around £20.74, bringing the total annual cost to approximately £596.74.
- Older HGVs (Euro V and below), which currently pay £749, will see a proportional increase based on the RPI adjustment.
- The daily levy, set at 2% of the annual rate, will rise accordingly, with caps at £9 for Euro VI vehicles and £10 for older models.
The VED rates for HGVs will also increase in line with RPI, affecting UK-registered vehicles.
What is the Retail Price Index?
The Retail Price Index (RPI) is a measure of inflation in the UK, tracking the average change in the cost of goods and services over time. Unlike the Consumer Price Index (CPI), RPI includes mortgage interest payments and council tax, often resulting in a slightly higher inflation figure. The RPI-linked increase in the levy is a standard measure to maintain its real-term value over time.
Who must pay the HGV levy?
The HGV Levy applies to all heavy goods vehicles over 12 tonnes operating on UK roads, regardless of their country of registration.
Payment methods and compliance
For UK-registered vehicles, the levy is included in VED payments, which can be made every six or twelve months. For foreign-registered vehicles, payment must be completed before entering the UK through the online HGV levy service.
The system accepts a variety of payment methods, including credit and debit cards, fuel cards, prepayment through an account, bank transfers, and PayPal. Failure to pay before entry can result in on-the-spot fines and penalties for non-compliance.
Exemptions and discounts
Certain vehicles are exempt from the levy, particularly those that produce zero emissions. The exemption aligns with the government’s push toward decarbonisation in the transport sector. In addition, the levy structure continues to favour cleaner vehicles, with lower rates applied to Euro VI HGVs, an incentive designed to encourage hauliers to transition to more environmentally friendly fleets.
Penalties for non-compliance
Failure to pay the HGV levy constitutes a criminal offense, and enforcement agencies conduct roadside checks to ensure compliance. Non-compliant drivers risk facing fines and other penalties. The Driver and Vehicle Standards Agency (DVSA) and Automatic Number Plate Recognition (ANPR) cameras play a key role in monitoring vehicles and identifying those that have not paid the levy.
Drivers found to be operating an HGV without having paid the required levy may face a fixed penalty of £300, which is payable immediately at the roadside. If a driver is unable to pay the fine on the spot, the vehicle may be immobilized and impounded until full payment is made. Additional charges may also be incurred for immobilization and storage. The penalty applies equally to both UK and foreign hauliers, ensuring that all operators are held to the same compliance standards.
For full details, the government’s official documentation on the levy can be accessed here.