VAT removal on electricity to cut home EV charging costs to 1.52p per mile from October 1
By Eve
The UK government announced in July that VAT on electricity will be removed from October 1, dropping the rate from 5% to zero. EV drivers on Octopus Energy's Intelligent Octopus Go tariff, which charges 8p per kWh during night hours (11.30pm to 5.30am), currently pay the equivalent of 1.6p per mile for home charging. The VAT removal could reduce this to an estimated 1.52p per mile if suppliers pass on the savings, with the policy applying automatically to existing fixed tariffs as well as new deals.
Why it matters
Lower home charging costs may accelerate EV adoption among households with off street parking, potentially reducing demand for public charging infrastructure in residential areas. Charge point operators serving on street and destination markets will need to monitor whether the widening cost gap between home and public charging affects utilisation rates and business models.
Source
- Original title
- “Andy Burnham gives 1.52p per mile charges to households with driveways from October 1”
- Published
- 25 September 2026
- Updated
- 29 September 2026
- Also covered by
- Google News
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
- Tag
- Andy Burnham
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