Andy Burnham has overseen two major driveway updates this October, with electric car owners across the UK set to feel the impact. From October 1, the Prime Minister slashed VAT rates on domestic electricity fees, with costs reduced from 5% to 0%.
Electric car owners have felt the impact, with motorists lucky enough to top up their cars at home likely noticing savings. Those with a smart tariff will pay just 7p per kWh or 2p per mile under the changes, making EVs highly affordable for many.
VAT Cut on Home Charging
Experts at Andersen EV previously warned that the new VAT rules could see road users save up to £40 per year. However, the new plan has been met with some controversy, with Mr Burnham not bringing public VAT rates into line with domestic costs.
Those using public chargers are instead paying as much as 44p per kWh or 12.6p per mile. However, this can hit as much as 79p per kWh or 22.6p per mile at some rapid charging plugs.
Vicky Edmonds, chief executive officer, EVA England said: “VAT relief on home electricity will provide welcome support with household energy bills.
“But for EV drivers, it just risks widening the existing ‘charging divide’ between those who can charge affordably at home and those who depend on the public network. Over three quarters of EV drivers believe the high cost of public charging is now the greatest barrier to owning an EV.”
Cross-Pavement Charging Red Tape Cut
It’s not the only update this October, with Mr Burnham and Labour also cutting red tape around cross-pavement solutions such as pavement gullies. This is a cable connected from your house, under the footpath, to a car, ensuring those without a driveway can still benefit from cheaper charging rates.
As of October 21, many motorists no longer need to apply for planning permission to get a cable fitted. Instead, road users only need local permission which can be a lot quicker.
RAC head of policy Simon Williams said: “Slashing red tape and making it cheaper and easier to install cross-pavement chargers or EV gullies for EV owners that don’t have a driveway is a much-needed step in the right direction to make charging fairer and accessible for all.”
However, not everyone can take advantage of the new rules due to a special update from Labour at the end of September. Officials decided that those living in one of 10,000 conservation areas in England would still need planning permission in a major blow.
