Home electricity VAT cut to zero widens EV charging cost gap to £200 per year
By Eve
From 1 October 2026, the UK Government removed VAT on household electricity for six months as a cost of living measure, while public EV charging remains subject to 20% VAT. ChargeUK calculates that a typical driver using 80% home and 20% rapid charging now pays £200 less in VAT annually than a driver relying entirely on public infrastructure (80% standard, 20% rapid mix), contributing to a total annual cost difference exceeding £1,000. A coalition including ChargeUK, EVA England, EVA Cymru, the AA, Autotrader and FairCharge has written to the Prime Minister urging an end to the disparity, which affects an estimated 10 million households without off street parking.
Why it matters
The widening tax gap intensifies pressure on charge point operators and policymakers to address pricing equity, as the cost differential may slow EV adoption among the third of UK households unable to install home chargers. Procurement teams and local authorities planning public networks must factor in affordability concerns that could affect utilisation and business case assumptions.
Source
- Source
- https://fleetworld.co.uk/ev-driveway-divide-increases-to-200-as-home-electricity-vat-drops-to-zero/
- Original title
- “EV ‘driveway divide’ increases to £200 as home electricity VAT drops to zero”
- Published
- 30 September 2026
- Updated
- 3 October 2026
- Also covered by
- Google News
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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