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Andy Burnham introduces new driveway rule with £2,000 warning – started in October
A temporary VAT cut on household electricity is expected to widen the cost gap between electric car drivers who can charge at home and those who depend on public rapid chargers. The policy, attributed in the article to Andy Burnham, is due to run from October 2026 to July 2027; critics say it benefits drivers with driveways while leaving many street-parking drivers paying higher VAT on charging.
Costpermile.co.uk estimates annual charging costs of about £200 for a homeowner using a smart tariff to drive 10,000 miles, compared with £2,260 for someone relying on public rapid chargers, a difference of £2,060. New AutoMotive has called for VAT rates to be equalised and also supports overnight tariffs for public chargers, while Char.gy’s chief executive says public charging is the only option for millions.
In short
- The VAT cut may deepen the charging cost gap.
- Home charging is estimated at £200 a year.
- Public rapid charging is estimated at £2,260 for the same mileage.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A temporary VAT cut could make home charging cheaper for households able to shift use to off-peak electricity, helping lower the running costs of electric cars and encouraging their adoption. Supporters could argue that a time-limited measure is a practical way to reward flexible energy use while broader charging infrastructure develops.
The case against
The cut may widen an existing cost gap between drivers with off-street parking and those who rely on public chargers, who can face much higher bills despite having no home-charging option. Critics argue that equalising VAT and offering overnight tariffs on public chargers would spread the benefits more fairly, including to the millions who park on the street.
Explained simply
VAT is a tax added to the price of goods and services, including electricity. The reported change concerns the rate charged on household electricity for a limited period, and how that compares with the VAT charged when drivers use public charging points.
Drivers who can charge at home may be able to use cheaper overnight electricity tariffs. Many people without driveways rely on public chargers, which can cost more, particularly rapid chargers. Campaigners and charging companies have called for the tax rates to be aligned and for more affordable overnight charging options.
The issue matters as more households consider electric cars and councils and companies expand charging networks. The balance of costs may affect drivers differently depending on where they live and how they charge.