Andy Burnham’s recent VAT cut on home energy rates has drawn criticism for overlooking the challenges faced by households without driveways. While home charging on a smart EV tariff costs approximately 7p per mile, according to Smart Home Energy Charge data, public rapid chargers can cost drivers as much as 25p per mile — over three times the price.
Burnham, the new Labour Party Prime Minister, has announced measures aimed at cutting energy bills and easing financial pressure. However, these VAT reductions primarily benefit those charging at home, leaving drivers who rely on public chargepoints at a significant disadvantage.
Charging an electric vehicle at home is generally the most affordable option. By using smart tariffs that automatically charge overnight when electricity prices are low, many EV owners can enjoy running costs of just a few pence per mile. Unfortunately, the 20% VAT on public charging remains unchanged, creating a stark disparity compared to the 5% VAT rate applied to home charging.
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Electric Vehicles UK chief executive Tanya Sinclair described this disparity as “one of the biggest inequalities in the UK’s EV transition.” She emphasized that millions of drivers without off-street parking have no choice but to pay the higher 20% VAT when using public chargers, while those with driveways benefit from reduced rates. “If this Labour Government is serious about a fair transition, it cannot ask EV drivers to pay different prices for the same electricity simply because of where they live,” Sinclair said.
RAC senior policy officer Rod Dennis echoed these concerns, noting the rising number of EVs on the road is encouraging but highlighting that public charging users still face a significant premium. Dennis advocates for a VAT reduction on public chargers to match the domestic electricity rate, a step that could encourage greater EV adoption.
As the UK accelerates its transition to electric vehicles, addressing these cost inequalities remains critical to ensuring that all drivers benefit equally from clean energy incentives.