From 1 October, VAT on domestic electricity charging will be cut from 5% to 0%, reducing the average cost of charging an electric vehicle at home to as little as 1.89p per mile. The change, introduced by Prime Minister Andy Burnham, is designed to help families struggling with rising electricity bills during the cost of living crisis, while also benefiting EV owners who charge on their driveways.
New charging costs for EV drivers
LeaseElectric said road users topping up with the EDF Energy Go Electric with Pod Point tariff will now pay just 1.89p per mile, down from 1.97p. Over 10,000 miles, this means drivers will pay around £189 instead of £198, though costs will vary depending on the tariff chosen.
Using the Good Energy EV Tariff, those charging a Volkswagen ID.3 could pay as little as 1.47p per mile, down from 1.54p. LeaseElectric commented: "For millions of households, this means lower electricity bills heading into winter. For electric vehicle drivers, however, it means something even more significant: charging an electric vehicle at home is about to become even cheaper."
Public charging costs unchanged
Experts at Andersen EV have previously cautioned that some high-mileage drivers could save up to £40 per year due to the VAT changes. However, electricity fees at public charging bays will not be reduced, with motorists expected to pay 20% VAT to top up, widening the "driveway divide" between home and public rates.
