Andy Burnham has introduced a new regulation affecting motorists with driveways. The Prime Minister slashed VAT rates on domestic electricity charging from October 1, dropping rates from 5% to 0%. The initiative aims to help households combat rising electricity bills during the cost-of-living crisis, while also supporting electric car owners who charge their vehicles at home. Drivers will witness the average cost of charging their EV on their driveway decrease under the new regulation.

Taking a Volkswagen ID. 3 150kW Match Pro S 79kWh 5dr Auto as an example, LeaseElectric said motorists charging with the EDF Energy Go Electric with Pod Point tariff will now pay just 1.89p per mile.

This represents a reduction from the previous rate of 1.97p. Over 10,000 miles, the saving means road users will pay approximately £189 to use the road, rather than £198.

Nevertheless, costs will differ depending on the particular tariff that road users have selected. Those charging the Volkswagen EV using the Good Energy EV Tariff could pay as little as 1.47p per mile, down from 1.54p per mile before the reduction.

LeaseElectric said: “For millions of households, this means lower electricity bills heading into winter. For electric vehicle drivers, however, it means something even more significant: charging an electric vehicle at home is about to become even cheaper.

“Because most EV owners charge their vehicles at home, removing VAT from domestic electricity means every home charge will cost less from 1 October 2026.”

Experts at Andersen EV have previously warned that some high-mileage motorists could save as much as £40 per annum due to the new VAT updates.

The development will prove unwelcome to those without a driveway or off-street parking and who rely on public charging points for their vehicles.

Electricity charges will remain unchanged at public plugs, with road users continuing to pay 20% VAT when topping up. The new regulation means the “driveway divide” between home rates will significantly widen.

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

A change affecting electric vehicle owners across England has sparked debate over the cost of charging cars at home, the growing divide between motorists with driveways and those who rely on public charging points, and the Government’s approach to making electric motoring more affordable.

The headline referring to Andy Burnham’s new “£1.98 driveway rule” may sound like a new charge imposed on homeowners. However, the underlying story is different. The reported figure relates to the cost of driving an electric vehicle, while the policy concerns changes to VAT on domestic electricity and measures intended to make home charging more accessible.

The distinction matters because homeowners are not being charged £1.98 simply for owning a driveway. Instead, the reported savings depend on electricity prices, charging tariffs, vehicle efficiency and how frequently a driver charges at home.

The changes are part of a wider debate about the cost of living, transport policy and whether the transition to electric vehicles is becoming more affordable for ordinary households.

What Is the New Driveway Rule?

The principal change highlighted in recent reports is a reduction in VAT on domestic electricity from 5 per cent to zero from October 1, 2026, under the policy described in those reports. The measure is intended to reduce household electricity costs, with potential benefits for drivers who charge electric vehicles at home. <Cite refs={[“turn262347search1″,”turn262347search9”]}/>

For motorists with a private driveway, garage or other suitable off-street parking space, home charging can already be cheaper than using many public charging networks. A reduction in the cost of domestic electricity could increase that advantage.

The £1.98 figure is not a new government fee for driveway owners. One report used the example of a Volkswagen ID.3 charged on an EDF Go Electric tariff, with the estimated running cost falling from 1.97 pence per mile to 1.89 pence per mile following the VAT change. Over 10,000 miles, that example would mean a reduction from approximately £198 to £189 in electricity costs for driving, a saving of around £9. <Cite refs={[“turn262347search1″,”turn262347search8”]}/>

That is an illustrative calculation rather than a universal saving. Drivers on different tariffs, with different vehicles or charging habits, could see different results.

The important point is that the policy relates to the price of domestic electricity, not a new tax on driveways.

Why Drivers With Driveways Could Benefit More

For electric vehicle owners, the ability to charge at home can make a considerable difference to the overall cost of motoring.

A household with a private driveway can generally install a dedicated charger, subject to the applicable requirements. This allows the owner to charge the vehicle overnight or at other convenient times, potentially taking advantage of cheaper electricity tariffs.

Public charging is different. Drivers who rely on rapid chargers, supermarket charging points or roadside facilities may pay substantially different rates depending on the operator and location.

Recent reports have highlighted that public charging continues to be subject to a standard 20 per cent VAT rate, while the reported domestic electricity change reduces VAT on household supplies to zero for the specified period. That difference has prompted criticism from charging-industry representatives, who argue that the tax treatment disadvantages drivers who cannot charge at home. <Cite refs={[“turn262347search5″,”turn262347search9”]}/>

The result is a potential divide between households with suitable off-street parking and those without it.

A driver living in a house with a driveway may have access to cheaper overnight charging. Someone living in a flat or terraced property without off-street parking may have to depend on public infrastructure, which can be more expensive and less convenient.

This is particularly important in towns and cities where many residents do not have private parking. If electric vehicles are to become a realistic option for a wider range of households, the Government will need to consider not only the cost of electricity at home but also the availability and affordability of public charging.

What Does the £1.98 Figure Actually Mean?

The headline’s £1.98 figure can easily create confusion because it sounds like a new charge or a fixed amount that every motorist will have to pay.

The reported example instead concerns the estimated electricity cost of driving a particular electric vehicle. The cited calculation puts the cost at around 1.97 pence per mile before the change and 1.89 pence per mile afterwards, depending on the tariff used. <Cite refs={[“turn262347search1″,”turn262347search8”]}/>

The difference is small for an individual mile, but it accumulates over time.

For a motorist travelling 10,000 miles annually, the example suggests a reduction of approximately £9 in charging costs. A driver covering more miles could see a larger saving, while someone who drives relatively little could see a smaller benefit.

Actual costs will depend on electricity rates, charging efficiency, weather, driving conditions and how much charging takes place at home.

This means there is no single amount that every electric vehicle owner will save. Nor does the policy guarantee that every household’s electricity bill will fall by a specific sum, because overall bills depend on consumption and the other components of the energy tariff.

For consumers, the most useful approach is to compare the rates available under their own electricity contract rather than assuming that a headline figure applies to their circumstances.

A Separate Change Could Help People Without Driveways

The wider policy debate is not limited to cheaper domestic electricity.

From October 21, 2026, a change to permitted development rules in England is scheduled to make it easier, within defined limits, to install certain electric vehicle charging equipment at homes without requiring planning permission. The measures include provisions for qualifying charging points and pavement cable channels, subject to the applicable conditions. <Cite refs={[“turn262347search16″,”turn262347search15”]}/>

This is significant because drivers without off-street parking have often faced practical obstacles when trying to charge an electric vehicle at home.

A charging cable stretched across a public pavement can create a trip hazard and obstruct people using wheelchairs, mobility aids or pushchairs. Existing restrictions and the need for local approval can also make installation difficult.

The new arrangements aim to reduce some of the planning barriers to home charging. However, permitted development does not mean that every installation is automatically allowed in every location.

The relevant size limits, safety requirements, property restrictions and rules governing the pavement must still be followed. Homeowners and renters should check the official requirements and local arrangements before installing equipment.

The change could offer additional options for some residents, but it does not guarantee that every property without a driveway will be suitable for a private charging installation.

Is the Government Creating a Two-Tier System for Drivers?

The contrast between home and public charging has raised questions about fairness.

Supporters of cheaper domestic electricity argue that reducing household energy costs benefits families generally and can make electric vehicles cheaper to run. They also say that encouraging home charging may help drivers move away from petrol and diesel vehicles.

Critics argue that the benefits are unevenly distributed. Households with private parking can often install a charger and take advantage of lower domestic rates, while people living in flats or densely populated urban areas may have little choice but to use public chargers.

The difference could influence decisions about which vehicle to buy. Someone who can charge overnight at home may find an electric vehicle financially attractive, while a driver who depends entirely on public charging may face higher costs and greater inconvenience.

The challenge for policymakers is to encourage cleaner transport without making access to affordable motoring depend too heavily on the type of property someone lives in.

Expanding public charging infrastructure, improving competition between charging providers and supporting suitable solutions for people without driveways could help reduce the gap.

Local authorities also have a role to play in identifying where charging points are needed and ensuring that public facilities are accessible to people with disabilities and other mobility requirements.

What Should Electric Vehicle Owners Do?

Drivers should not assume that they need to pay a new driveway fee or make an immediate change simply because they have seen the headline.

Instead, electric vehicle owners can take several practical steps.

First, they should check their electricity tariff and establish whether their supplier has passed the relevant VAT change through to their bill. The final cost of charging depends on the tariff and the amount of electricity used.

Second, drivers should compare standard electricity rates with dedicated electric vehicle tariffs. Some offer lower overnight rates, although the best option depends on when the household uses electricity and whether the tariff has other conditions.

Third, people considering a home charger should check installation costs, compatibility with their vehicle and any relevant planning or property requirements.

Finally, drivers without private parking should investigate local public charging options and check whether the new cross-pavement arrangements are available and suitable for their circumstances.

These steps are more useful than relying on a single headline figure because they help motorists understand the costs they will actually face.

What Does This Mean for Andy Burnham?

The policy has been presented in news coverage as one of Andy Burnham’s changes affecting motorists. The broader political argument is that governments must demonstrate how their decisions will help households manage rising living costs while encouraging investment in cleaner transport.

For Burnham, the challenge is to show that energy and transport policies offer practical benefits rather than simply producing favourable headlines.

Reducing the cost of domestic electricity could help households, including those charging electric vehicles at home. But the policy’s wider success will depend on the savings people actually receive and whether drivers without private parking are given affordable alternatives.

A policy that benefits one group more than another can create political controversy even when it is intended to reduce costs overall. Ministers will therefore need to explain how the measures fit into the wider strategy for household energy bills, charging infrastructure and the transition to electric vehicles.

The Government must also be precise about the rules. Describing a change as a “driveway rule” may attract attention, but it risks giving homeowners the impression that a new property charge or restriction has been introduced when the underlying issue is electricity taxation and charging access.

Clear communication is essential if motorists are to understand what has changed and what they need to do.

The Bottom Line for Homeowners and Drivers

The reported £1.98 driveway headline does not describe a new charge imposed on every household with a driveway. It refers to an electric vehicle running-cost example associated with changes to the treatment of domestic electricity.

The reported VAT reduction from October 1 could make home charging cheaper, although individual savings will depend on the driver’s tariff, vehicle and annual mileage. A separate change scheduled for October 21 aims to make certain home-charging installations easier for people without off-street parking, subject to defined conditions.

The wider question is whether these measures will make electric motoring affordable for more people or mainly benefit those who already have access to private parking and home charging.

For households, the practical advice is straightforward: check the actual electricity tariff, compare charging options and verify the applicable rules before making decisions about installing equipment.

For policymakers, the task is more complicated. They must balance lower household costs, environmental objectives, road-user fairness and the need for reliable public charging infrastructure.

Ultimately, the value of the changes will be measured not by the dramatic wording of a headline but by the savings households actually receive and whether drivers across different types of housing can benefit from the transition to electric vehicles.