Andy Burnham has introduced new driveway rule updates this October, with VAT fees cut from earlier this month.
Andy Burnham has overseen new driveway updates this October (Image: Getty)
Andy Burnham’s new driveway rule change introduced this October has widened the divide between home and public electric car charging to as much as £274, according to analysis. New data from ChargeUK has revealed that the so-called driveway divide, the difference between charging at home vs in public, has soared under the Prime Minister’s actions. Domestic electricity was charged at 5% until October 1, when Mr Burnham oversaw changes to cut the fee to 0%.
However, Mr Burnham decided to keep public charging costs the same, with road users still paying 20% VAT to top up their battery. This has widened the divide from just 15% to 20%, with those relying on public charging bays now paying hundreds of pounds more.
According to ChargeUK, drivers charging an electric car in public are paying a total of £1,642 per year, with £274 in VAT fees alone. Meanwhile, those charging their car at home are paying just £224 per year due to cheaper smart tariff rates. These owners are also paying £0 in VAT from this October.
Those who do a mix of home and public charging will also be affected. An estimated 80/20 home and public split would see these motorists pay £611 per year to use the roads. These owners will also be paying around £72 per year in VAT fees.
Shane Brennan, chief executive officer, ChargeUK said: “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. However, it will also entrench the driveway divide for those current and want-to-be EV drivers who pay the full 20 per cent VAT to charge their cars at the worst moment.”
Motorists charging their EVs in public are paying much more (Image: Getty)
ChargeUK has written to Andy Burnham and Chancellor John Healey demanding an end to the driveway divide.
The open letter has also been signed by a range of experts, including AA President Edmund King, AutoTrader’s Ian Plummer and the Chief Executive of the BVRLA Toby Poston.
The letter reads: “It is time to end the unfair driveway divide that sees drivers with access to home electric vehicle charging benefitting from zero VAT and those without paying 20%.”