A driveway rule potentially costing motorists hundreds of pounds per year has been branded “unfair” with experts calling on the Labour government to intervene. Electric car owners with access to their own driveway can top up their cars overnight and take advantage of favourable rates.
However, those without access to off-street parking such as those living in flats or apartments in major cities are forced to top-up their vehicles at public charging bays. Electricity in public is charged at 20% VAT compared to just 5% at home, adding unnecessary costs on total bills. Previous analysis from the Resolution Foundation found these road users relying on public charging bays would pay nearly six times more per year to top-up.
Charging in public would cost around £712 per annum, compared to around £139 per year for those with a driveway.
Ian Reid, head of editorial content at Carwow suggested equalising VAT was a simple step that could help motorists across the country.
He said: “Price and charging remain the biggest friction points. Equalising the VAT between home and public charging is a simple fix – right now, it’s cheaper to charge on a driveway, which just isn’t fair or practical for millions of people in flats or urban areas.
“Halving VAT on new EVs and removing the cost barriers on charging would give consumers the confidence they need – and signal that Britain is serious about making the EV transition work. The private sector is ready. Now it’s time for Government to step up.”
Citizens Advice stressed the issue was perhaps more stark with those on lower incomes most affected.
They suggested there was a clear link to income with properties enjoying access to a garage or driveway home to 76% of the wealthiest families.
They therefore state that households on lower incomes are likely to pay more for EV charging.
Ian added: “What we need now are fiscal policies that keep up with that demand – from direct purchase incentives to scrapping VAT on public charging.
“This isn’t just about helping drivers make the switch – it’s about protecting jobs, attracting investment, and staying on track to meet our net zero targets.”
It comes after the Government changed rules allowing more freedom to install electric car charging divides.
Officials cut red tape on the installation of plugs, allowing individuals to install devices without seeking planning permission.