Andy Burnham Introduces New £1.98 Driveway Rule – Starts in October

Millions of motorists across the United Kingdom are facing important changes to the cost of owning and running electric vehicles following a new government initiative introduced by Prime Minister Andy Burnham in October 2026. The controversial changes could help drivers who charge their electric cars at home save money, but they have also sparked criticism over what campaigners describe as an unfair divide between motorists with private driveways and those who depend on public charging stations. While the government insists that the measures will help households cope with rising energy costs, critics argue that the new arrangements risk benefiting wealthier homeowners while leaving millions of ordinary drivers behind.

The changes came into effect on 1 October 2026, when the government reduced VAT on domestic electricity from 5 per cent to zero. Although the policy was introduced primarily to reduce household energy bills, it has also created significant savings for electric vehicle owners who charge their cars using electricity supplied directly to their homes.

For motorists with driveways, the change could make charging an electric vehicle considerably cheaper. Drivers using domestic electricity can benefit from the reduced VAT rate, meaning that charging their batteries at home costs less than it did previously. Depending on their electricity tariff, some motorists could pay approximately 7p per kilowatt-hour during cheaper charging periods.

The financial benefits may appear relatively small at first, but they can become significant over time. According to motoring specialists, ordinary electric vehicle owners could save approximately £20 to £25 annually, while drivers covering particularly high mileage could save as much as £40.

Some calculations suggest that charging a Volkswagen ID.3 with a 79kWh battery could become cheaper under certain electricity tariffs. One example estimates that the cost per mile could fall from approximately 1.97p to 1.89p. For motorists covering 10,000 miles annually, the difference could produce noticeable savings over the longer term.

However, the biggest controversy concerns drivers who do not have access to a private driveway or off-street parking. These motorists often have little choice but to use public charging stations, where electricity continues to attract the standard 20 per cent VAT rate.

This means that two motorists driving similar electric vehicles could face significantly different charging costs simply because one has a driveway and the other parks on the street. Public charging prices can also be considerably higher because of network operating costs and commercial pricing arrangements.

The situation has been described as the driveway divide, with critics arguing that the government’s policy risks creating an unfair advantage for homeowners. Millions of British households do not have access to private off-street parking, particularly in densely populated cities and older residential neighbourhoods.

The criticism has attracted attention from motoring organisations and electric vehicle industry representatives. They argue that reducing VAT on domestic electricity while maintaining the higher rate on public charging makes electric vehicles less affordable for people living in flats, terraced houses and urban areas.

The government has attempted to address some of these concerns through additional measures designed to make home charging accessible to people without driveways. From 21 October 2026, changes to planning rules removed the requirement for planning permission for qualifying cross-pavement electric vehicle charging installations. These systems allow residents to connect their homes to vehicles parked on the road through specially designed equipment installed across pavements.

The government says the changes could save motorists up to £300 in installation costs and make home charging more accessible. However, local highway authority approval and safety requirements still apply, while certain protected areas may remain subject to additional restrictions.

Despite these developments, campaigners believe that the government has not gone far enough. They argue that public charging VAT should also be reduced to create a fairer system for all electric vehicle owners.

Another concern is the wider financial burden facing British motorists. Fuel prices, insurance premiums, vehicle maintenance and household electricity bills have all become important considerations for families attempting to manage their budgets. Although electric vehicles can offer lower running costs, the initial purchase price and availability of affordable charging remain significant obstacles.

The government’s wider strategy is to encourage more people to switch from petrol and diesel vehicles to electric alternatives. Ministers believe that reducing charging costs and simplifying installation procedures will help accelerate the transition towards cleaner transport.

Nevertheless, the policy has created a political challenge for Burnham. Critics argue that environmental policies must be designed to benefit ordinary working families rather than concentrating financial advantages among homeowners with private parking facilities.

In my opinion, reducing domestic electricity VAT is a positive step, particularly during a period when households are struggling with the cost of living. However, the government must recognise that not every motorist has the same access to charging facilities. A fair transition towards electric vehicles requires affordable public charging, reliable infrastructure and practical solutions for people living in homes without driveways.

Ultimately, Andy Burnham’s new October driveway changes represent an important development in Britain’s electric vehicle policy. The reduction of domestic electricity VAT from 5 per cent to zero offers financial benefits to households and motorists charging their vehicles at home. Additional planning changes could also make cross-pavement charging easier for residents without private parking. However, the continued 20 per cent VAT rate on public charging has raised legitimate concerns about inequality between different groups of motorists. The government must now demonstrate that its electric vehicle strategy works for everyone, not simply those fortunate enough to own a home with a driveway. The success of Britain’s transition to cleaner transport will depend on making affordable charging accessible to all.