UK domestic electricity VAT cut to 0% from October 1 widens gap with public charging rates
By Eve
The UK government reduced VAT on domestic electricity from 5% to 0% starting October 1, benefiting electric vehicle owners who charge at home. Andersen EV estimates high-mileage EV drivers could save up to £40, with home charging now costing around 7p per kWh compared to approximately 50p per kWh at public charging points, which remain subject to 20% VAT. Industry experts note the policy widens the cost divide between home and public charging infrastructure.
Why it matters
The VAT disparity creates a two-tier market that may discourage public charging investment and disadvantage drivers without home charging access, potentially affecting CPO business models and infrastructure deployment strategies. The widening cost gap between home and public charging could influence site selection and pricing strategies for charge point operators.
Source
- Original title
- “Andy Burnham to introduce two driveway rule changes this October”
- Published
- 17 October 2026
- Updated
- 18 October 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
- Tag
- Andy Burnham
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