The Prime Minister has overseen new updates to driveway rules this October, with road users enjoying new savings.
Andy Burnham has overseen new driveway VAT fees this October (Image: Getty)
Andy Burnham has introduced a new 7p per kWh driveway rule change from October, with electric car owners across the country set to be impacted. The Prime Minister cut VAT rates on domestic electricity supply from October 1, with the tweak set to have a knock-on effect for electric car owners. The new rule means that motorists can top-up their electric vehicles for less, with VAT rates cut from 5% to 0% since the start of this month.
According to analysis from costpermile.co.uk, motorists charging a standard family electric hatchback or SUV achieving an average efficiency of 3.5 miles per kWh using a home smart off-peak tariff will pay the least. Fees for these drivers will sit at around just 7p per kWh. This works out at around 2p per mile, or £200 per year to use the roads over the course of 10,000 miles.
Smart tariffs are increasingly more popular and are designed to charge vehicles at the cheapest possible time such as overnight. This allows motorists to benefit from the absolute cheapest rates and make incredible savings on their road bills.
However, those without access to kart charging will also save under Mr Burnham’s new plan, with VAT also axed on the standard domestic tariff. Motorists will now pay as little as 24p per kWh, or around 6.9p per mile to get behind the wheel. Over the course of 10,000 miles, road users would have paid an average of £690.
Mr Bunham has not cut VAT rates on public electricity supplies, meaning those relying on charging bays to fill their battery will still pay hefty rates. According to costpermile.co.uk, motorists charging their cars at an on-street charging bay are paying closer to 44p per kWh per 12.6p per mile.
Meanwhile, those relying on chargers at retail parks or supermarkets will pay even more, with average charging costs of 52p per kWh or around 14.9p per mile. Shane Brennan, chief executive officer at ChargeUK, previously warned: “Cutting VAT on home electricity is the right call at the right time, it will relieve some pressure on what will be a tough winter for energy consumers, including EV drivers.
Electric car owners with a driveway are set to pay less to charge (Image: Getty)
“However, it will also entrench the driveway divide for those current and want-to-be EV drivers who pay the full 20% VAT to charge their cars at the worst moment.”