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Driving law changes coming in June will bring new licence rules, HMRC fuel updates, and more

By Jodie Chay Oneill | June 10, 2025

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Drivers are being alerted to several important changes in motoring laws taking effect soon

Driving law changes coming in June will bring new licence rules, HMRC fuel updates, and more

Drivers are being alerted to several important changes in motoring laws taking effect soon, which could affect owners of petrol, diesel, and electric vehicles.

In June 2025, licence rules will shift for certain vehicle owners, company car fuel rates will be updated by HMRC, and there could be new developments regarding the ongoing car finance scandal.

Here’s a summary of the key driving law updates to watch out for this June:

Driving licences

From June 10, 2025, holders of a category B driving licence will be allowed to drive electric or hydrogen fuel cell vehicles weighing up to 4,250kg. This is a notable increase compared to the current 3,500kg limit for petrol and diesel cars under the same licence category.

While physical driving licences won’t be changed to reflect this, the new rules will enable drivers to operate heavier EVs and tow larger trailers legally.

HMRC fuel rates

On June 1, HM Revenue and Customs will release their second quarterly update of advisory fuel rates (AFR) for company car users this year.

These rates help employers reimburse employees for fuel costs incurred during business travel, or to recover fuel costs for private journeys.

For petrol cars with engine sizes between 1,401cc and 2,000cc, and for those over 2,000cc, the reimbursement rate will drop by 1p per mile for the next three months.

Solar canopies over car parks

Energy Secretary Ed Miliband has supported proposals to install solar panel canopies over existing and new car parks. These could contribute power to the national grid and reduce electricity costs for drivers.

The government is currently gathering public input on the idea through a call for evidence, which closes this June.

According to analysis, an 80-space car park fitted with solar panels could save approximately £28,000 annually on electricity bills.

Electric car charging

At the end of May, the Labour Party announced plans to simplify the process for installing electric vehicle charging points across the UK.

Future of Roads Minister Lilian Greenwood confirmed that planning permission will no longer be required for businesses or individuals installing public or private EV chargers.

Industry experts have welcomed this move, predicting a rapid expansion in EV charging infrastructure, with a target of 300,000 public chargers nationwide by 2030.

Car finance scandal

Hundreds of thousands of drivers are anxiously awaiting a decision from the Supreme Court and the Competition and Markets Authority (CMA) regarding the high-profile car finance scandal.

While no fixed date has been set, experts compare the case’s potential impact to the PPI scandal, which resulted in billions of pounds in compensation payouts.

Money Saving Expert Martin Lewis has suggested on social media platform X that a verdict could be reached as soon as July.

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