Andy Burnham is set to introduce a major discount for motorists with driveways in just a couple of weeks.
Andy Burnham is set to launch a new rule change that will have an impact on road users with access to driveways. The Prime Minister is set to cut domestic electricity VAT rates, with fees being slashed from 5% to 0% from October 1.
The new rates are designed to help families struggling with electricity bills, but the new rule will have a knock-on effect for electric car owners. The new discount will allow EV owners to top-up their cars for cheaper, with experts suggesting that road users could be set to save as much as £40 in a considerable boost.
Motorists with driveways can benefit from cheaper EV charging (Image: Getty)
David Martell, CEO of home charger company Andersen EV, said: “For the average EV driver charging at home, the saving on charging alone is likely to be around £20–£25 per year. For higher-mileage drivers, it could be closer to £35–£40.
“That may not sound transformational on its own, but it’s the direction of travel that matters. It demonstrates a willingness to support the transition with practical measures that make a real difference to consumers.”
According to previous estimates from Carwow, the cost of topping-up a 100kWh battery would drop from £26.11 to just £24.87 under the new VAT rates. This would save road users around £1.24 per charge. The experts warned that over the course of a full year, motorists topping up their car battery at home at least once per week could be expected to save around £65.
However, there are fears Mr Burnham’s new rule could create a bigger “driveway divide”, with those road users not able to benefit from off-street parking left out.
VAT on electricity supplied to public charging bays remains at 20% in a serious blow to many EV owners.
Ben Nelmes, chief executive of New AutoMotive, warned: “The Government have handed EV drivers with a driveway a tax cut on power they were already paying [the] least for.
“Meanwhile, the driver charging on a public charger down the road, because they’ve got nowhere else to plug in, is still handing 20% to the taxman on every single mile. That’s a design flaw, and it leaves us with a VAT system that asks most of those who can least afford to contribute.”