Andy Burnham's two new 2026 driving rule changes could tweak motorists' bills by £93 per year. The new Prime Minister has already confirmed two new policies that will have a direct effect on road users, with changes to domestic electricity VAT rates and bus pass discounts coming into effect in weeks.
VAT cut on home electricity
Slashing VAT rates on domestic electricity supply from 5% to 0% comes into effect from October, with the plan aimed on keeping more money in families' pockets. However, the plan will impact EV owners with a reduction on how much road users could expect to pay to top-up at home.
Andersen EV previously explained that high-mileage drivers could save £40 per year, but Carwow has stressed the savings could be as much as £65 per year.
Bus fare cap reduction
Meanwhile, Mr Burnham has confirmed that bus tickets would be capped at £2 from January, down from the current £3 limit. Previous Government data has revealed motorists take an average of 28 bus journeys outside of London per year, meaning the plan could save £28 every 12 months.
It means that road users able to benefit from both the electric car savings and cheaper bus tickets could save a hefty wad of cash. Adding the £65 precision to the estimated £28 savings means that road users will actually save as much as £93 per year under Mr Burnham’s new plan.
Impact on drivers
The news could be a huge boost to cash-strapped road users desperate to cut the cost of car ownership. The two policies have been part of Mr Burnham’s promise to cut the cost of living since walking through the steps of Downing Street.
After announcing the bus pass discounts, Mr Burnham said: “Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living. As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.”
