Andy Burnham has been told to axe a simple policy which is penalising motorists for not having access to their own driveway, forcing some road users to pay as much as 23p per mile.
Motorists topping up their electric car at public charging stations pay a lot more than those charging at home, with differing VAT rates part of the issue. Those using domestic electricity supply are charged just 5% VAT, while those using public chargers pay 20%. The cost difference can be enormous, with road users paying over 20p per mile more to get behind the wheel.
Cost disparity for EV drivers
A typical EV will be capable of around 3.5 miles per kWh. But, with rapid public charging plugs above 50kW costing as much as 80p per kWh, road users are paying 23p per mile to use the roads.
Motorists using a standard public plug up to 39kW will still be charged around 54p per kWh, or 15p per mile in a staggering blow. In comparison, the same EV would pay around 7p per kWh at a domestic plug, cutting running costs as low as 2p per mile.
Call for VAT cut on public chargers
Tom Jervis, consumer writer at Auto Express, has called on Andy Burnham to take immediate action to cut VAT costs. As part of a new ten-part Auto Express motoring manifesto calling the Prime Minister into action, experts warned that the EV driveway charging tax needed to be “eliminated”.
Speaking exclusively to Express.co.uk, Tom said: “The fact you have to pay 20% VAT when you charge your car on a public charger creates a barrier for those on lower incomes wanting to transition to an EV, as they are the least likely to have access to a home charge point.
“We want VAT scrapped on public chargers too, plus a review of the Public Charge Point Regulations so they better reflect the real issues drivers face every day, from pricing transparency and reliability to clear accountability when things go wrong.”
Impact on households without off-street parking
Previous data from the RAC Foundation has found that as many as 35% of UK households do not have access to off-street parking.
The issue is more pronounced in major cities and town centres, with previous data from Andersen EV suggesting 60% of homes don’t have off-street parking in urban areas. In comparison, just one in six rural homes do not have access to a driveway or some sort of off-street parking.
