Andy Burnham has introduced new driveway rule changes in October, with motorists facing 6.9p per mile fees as part of the updates. Mr Burnham has cut VAT rates on domestic electricity from 5% to 0%, with electric vehicle owners also impacted.
Electric car owners who use their domestic home supply to charge, either on a driveway or an off-street parking space, can take advantage of new savings. According to analysis from costpermile.co.uk, road users topping up at home with a smart off-peak tariff could be paying just 7p per kWh, or 2p per mile.
Cost Breakdown for Home and Public Charging
However, previous data shows that just 49% of EV owners have a smart specialist tariff in place, with many still relying on their standard domestic home tariff. According to costpermile.co.uk, this is charged at a slightly higher 24p per kWh, and works out at around 6.9p per mile when on the roads.
Motorists who travel an average of 10,000 miles per year are therefore paying around £690 to get behind the wheel. However, those without access to off-street parking or without a driveway will not enjoy the savings, with public VAT electricity rates still charged at 20%.
Public Charging Costs and the Driveway Divide
In comparison, analysis shows that road users charging their cars in retail parks or supermarkets are paying closer to 52p per kWh, or 14.9p per mile. According to costpermile.co.uk, all fees were calculated for a standard family electric hatchback or SUV car achieving an average efficiency of 3.5 miles per kWh.
However, not everyone is positive about the changes, with fears that Mr Burnham's move has widened the so-called 'driveway divide' between public and private charging. The car industry had been pushing for officials to bring public VAT fees into line with private fees, but Mr Burnham instead cut home rates.
Industry Reaction and Potential Savings
Experts at Hippo Leasing have previously suggested that slashing VAT rates on public charging could have saved drivers as much as £389 per year. Earlier this month, Tom Hurst, UK Country Director at Fastned, added: "There is already a driveway divide between electric vehicle users who can charge at home and those who can't, which risks making the switch to electric harder for millions of people. [The] VAT change makes this divide even more striking. An electric car should be an option for everyone, regardless of whether you have a driveway."
