Andy Burnham's new driveway rule change introduced this October has widened the divide between home and public electric car charging to as much as £274, according to analysis.
New data from ChargeUK has revealed that the so-called driveway divide, the difference between charging at home versus in public, has soared under the Prime Minister's actions.
VAT cut on home charging
Domestic electricity was charged at 5% until October 1, when Mr Burnham oversaw changes to cut the fee to 0%. However, Mr Burnham decided to keep public charging costs the same, with road users still paying 20% VAT to top up their battery.
This has widened the divide from just 15% to 20%, with those relying on public charging bays now paying hundreds of pounds more.
Annual charging costs compared
According to ChargeUK, drivers charging an electric car in public are paying a total of £1,642 per year, with £274 in VAT fees alone. Meanwhile, those charging their car at home are paying just £224 per year due to cheaper smart tariff rates. These owners are also paying £0 in VAT from this October.
Those who do a mix of home and public charging will also be affected. An estimated 80/20 home and public split would see these motorists pay £611 per year to use the roads. These owners will also be paying around £72 per year in VAT fees.
Industry response and demands
Shane Brennan, chief executive officer of ChargeUK, said: “Cutting VAT on home electricity is the right call at the right time, it will relieve some pressure on what will be a tough winter for energy consumers, including EV drivers. However, it will also entrench the driveway divide for those current and want-to-be EV drivers who pay the full 20 per cent VAT to charge their cars at the worst moment.”
ChargeUK has written to Andy Burnham and Chancellor John Healey demanding an end to the driveway divide. The open letter has also been signed by a range of experts, including AA President Edmund King, AutoTrader's Ian Plummer and the Chief Executive of the BVRLA Toby Poston.
The letter reads: “It is time to end the unfair driveway divide that sees drivers with access to home electric vehicle charging benefitting from zero VAT and those without paying 20%.”
