Burnham VAT cut drops home EV charging to 1.52p per mile while on-street users face 16p
By Eve
Prime Minister Andy Burnham has removed the 5% VAT on electricity from 1 October, cutting home EV charging costs to as low as 1.52p per mile for drivers on tariffs such as Intelligent Octopus Go (8p per kWh overnight). Households without driveways must rely on public charging at more than ten times that rate, around 16p per mile, widening the cost gap between home and on-street charging. The policy aims to ease cost of living pressures but highlights the disparity for drivers lacking off-street parking.
Why it matters
The VAT removal sharpens the business case for workplace and destination chargers serving drivers without home access, while CPOs face pressure to justify public tariffs now an order of magnitude higher than domestic rates. Procurers and local authorities will need to address equity concerns as the policy widens the charging cost divide.
Source
- Original title
- “Andy Burnham hands 16p per mile charges plan to households without driveways”
- Published
- 29 September 2026
- Updated
- 30 September 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
- Tag
- Andy Burnham
Related news
UK cuts home charging VAT to 0% but leaves public charging at 20%, widening driveway divide
From 1 October, domestic electricity VAT in the UK dropped to 0%, cutting home EV charging costs by an estimated £40 per year for drivers with off street parking. Public charging remains subject to 20% VAT, prompting char.gy CEO John Lewis to call the disparity unfair and urge Labour to reduce public charging costs. The policy change, linked to Andy Burnham's initiatives, has been criticised for widening the so called driveway divide between EV owners with and without private parking.
Why it matters
The VAT gap between home and public charging may slow uptake among drivers reliant on public infrastructure, pressuring charge point operators to absorb cost differences or risk losing customers. Policymakers and CPOs face renewed calls to level the playing field, which could influence future subsidy design and site economics for on street and destination charging.
UK allows pavement cable gullies for home EV charging from 21 October but excludes conservation areas
From 21 October, homeowners and renters in England can install cross pavement cable solutions, such as gullies, to connect home chargers to cars parked on street without traditional planning permission, enabling them to access 0% VAT domestic electricity rates instead of the 20% rate on public chargers. The Prime Minister has cut domestic electricity VAT from 5% to 0%, saving driveway owners up to £40 per year. However, residents in around 10,000 conservation areas, affecting as many as 3.5 million people, will still require full planning permission and cannot use the simplified process.
Why it matters
The pavement gully rule removes a major barrier for home charging installations in streets without driveways, potentially expanding the addressable market for residential charge point operators. The conservation area exclusion leaves a significant segment of urban residents dependent on costlier public charging infrastructure, sustaining demand for on street and destination charging networks.
EU to cap Chinese hybrid imports at 350,000 vehicles per year from December
The European Commission has confirmed a quota limiting Chinese hybrid electric vehicle imports to 350,000 units annually, down from an expected 800,000 battery and plug-in hybrids this year. The measure, agreed in Beijing last week and enforceable from December under WTO safeguard rules, aims to halve China's EU market share from 6% to 3% over a four year period. Volkswagen's leadership has backed the plan to support domestic manufacturing.
Why it matters
The quota will reshape EV supply chains and may accelerate local manufacturing investment by Chinese OEMs seeking to maintain EU sales, directly affecting charging infrastructure planning as fleet composition shifts. CPOs and site hosts should anticipate changes in vehicle mix and charging demand patterns as the policy takes effect.