Electric vehicle owners who cannot charge their cars at home could end up paying £200 more per year than those who can, according to experts. The disparity stems from the fact that home EV charging incurs no VAT, while public charging is still subject to a 20% rate.
This follows Andy Burnham's decision to cut VAT on electricity bills. While the move has benefited millions of households, critics argue it has created an unfair gap among EV owners, with the situation being labelled a "pavement tax" for motorists without driveways.
Campaigners warn of EV adoption impact
Campaigners warn this could create an average divide of £200 and fear it could hinder the shift towards electric vehicles. Taxes on EVs have also been increased over the past couple of years, sparking similar concerns.
Burnham reduced VAT in an effort to alleviate pressure on households. Mike Thompson, motoring expert at Leasing Options, said: "For many motorists, home charging is one of the biggest advantages of owning an electric vehicle, but for millions of households that rely on on-street parking, accessing those savings can be much more difficult."
Call for practical charging solutions
Thompson added: "That's why discussions around pavement charging and other solutions are important. As motorists consider switching to electric, there needs to be practical solutions in place that work for everyone regardless of their property type."
He continued: "The idea that EVs are expensive to run is outdated. In reality, when you look at how people actually charge their cars, mostly at home, often overnight, and increasingly on smart tariffs, the savings can be significant compared to petrol or diesel vehicles. The challenge is ensuring those benefits aren't limited to homeowners with private driveways."
Research highlights charging cost gap
Research from ChargeUK shows that an EV driver who can charge predominantly at home pays more than £1,000 less per year than someone who relies on public charging, with the VAT accounting for around £200 of that gap.
"That is why, making charging accessible for residents who park on the street could help remove a key obstacle to EV adoption. If the UK is serious about the transition to EVs, drivers need straightforward, affordable charging options wherever they live. Ultimately, motorists shouldn't feel disadvantaged simply because they don't have off-street parking. Finding practical and economical solutions to EV charging will be an important step in encouraging more drivers to make the switch."
