Andy Burnham’s new driveway rule change introduced earlier this week could save road users as much as £14.90, according to experts. Mr Burnham has slashed VAT rates on domestic electricity costs, with rates down from 5% to 0% from October 1.

The move is designed to help billpayers, but the change will have a knock-on effect for electric car owners topping up their batteries at home.

There has been much deliberation on how much difference the new rule fees will really make, with some experts suggesting that it could slash £40 off bills. However, new analysis from MoneySuperMarket has revealed drivers will save less than £15 for the next six months.

Speaking exclusively to The Express, Alicia Hempsted, Car Insurance Expert at MoneySuperMarket said: “Though the savings will be modest for most, at just under £15 depending on their tariff, the six-month VAT cut on household electricity is welcome news for EV drivers who can charge their vehicles at home. However, public charging will continue to have 20% VAT applied.”

MoneySuperMarket explained that the average EV driver covers 8,130 miles a year, or 4,065 miles across the six months of the planned VAT cut on electricity.

Using HMRC’s average electric car efficiency of 3.59 miles per kWh, the average EV drivers will use roughly 1,132 kWh of electricity charging at home over the next six months.

Under Ofgem’s price cap, the average electricity unit rate from 1st October is 26.32p perkWh with no VAT. Had the 5% VAT charge still applied, the fee would be 27.64p per kWh.

According to the experts, for the average EV driver, charging at home will now cost £298.02 over six months, down from a possible £312.93. This would work out at a saving of £14.90 or the equivalent of 194 miles of free driving.

Alicia told The Express: “For drivers who don’t have access to home charging, it’s worth shopping around. Some charge point operators offer cheaper off-peak rates, which typically run between 8am and 11am and 4pm and 10pm, while slower chargers can often work out cheaper than rapid charging if you’re not in a hurry. Regular users may also find that a charge point operator’s subscription plan helps reduce the cost per kWh.”

Andy Burnham’s New £14.90 Driveway Rule Change: What Drivers Need to Know This Week

Drivers across Britain are being urged to pay attention to a change affecting the cost of charging electric vehicles at home, as a new electricity tax measure introduced by Prime Minister Andy Burnham takes effect. The policy has reopened a debate about fairness between motorists who have private driveways and those who must rely on public charging points.

The headline figure of £14.90 has added to the confusion, with drivers wanting to know whether the change means an additional charge, a new requirement for properties with driveways or a potential saving on household electricity bills.

The key point is that the new measure is a change to VAT on qualifying domestic electricity, rather than a general £14.90 charge imposed on people who own driveways. The Government’s temporary tax change came into effect on 1 October 2026 and is scheduled to run until 31 March 2027 in England, Scotland and Wales.

The measure is intended to ease pressure on household energy bills. However, it has also highlighted a difference in the tax treatment of home electricity and electricity supplied through public electric vehicle charging points.

For drivers, the practical effect depends on where they charge their vehicles, how much electricity they use and whether they can access a suitable home-charging arrangement.

What has changed this October?

The Government has temporarily reduced VAT on qualifying domestic electricity supplies from 5% to zero in Great Britain.

The measure was announced as part of a wider effort to ease the cost of living. Ministers said the change would reduce the annual energy bill for a typical household by around £45 compared with what it would otherwise have paid under the relevant price-cap arrangements.

The reduction applies automatically to qualifying household electricity supplies. Customers do not need to submit a separate application to receive the benefit.

For people with electric vehicles, the change can also reduce the VAT charged on electricity used to charge a car at home, because the electricity is supplied through the household’s domestic energy account.

This is particularly relevant to motorists who have a driveway or private parking space where a home charger can be installed.

However, the tax change does not mean that every driveway owner will receive the same saving. The benefit depends on electricity consumption, the household tariff and how much charging takes place at home.

The £14.90 figure should not be interpreted as a universal fee or guaranteed saving under the new rule. The precise amount depends on the calculation being used and the individual driver’s circumstances.

Why people with driveways may benefit

Home charging has long been an attractive option for electric vehicle owners because it can be convenient and, in many circumstances, cheaper than relying entirely on public charging stations.

A driver with a driveway can often install a dedicated charging unit and recharge a vehicle overnight. Some electricity suppliers also offer tariffs designed to make charging at particular times less expensive.

With qualifying domestic electricity temporarily subject to 0% VAT, the tax element of home charging is reduced further.

The amount saved will depend on how much electricity is used. Someone who drives long distances and charges frequently may see a different benefit from a motorist who uses an electric car only occasionally.

There are also installation costs to consider. A home charger may require equipment, electrical work and possible upgrades to the property’s electricity supply. These expenses can affect the overall financial benefit of switching to an electric vehicle.

Nevertheless, for households with suitable off-street parking, the new VAT measure provides an additional reduction in the tax applied to qualifying electricity consumption.

The problem for drivers without driveways

The policy has attracted criticism because motorists who cannot charge at home may not receive the same benefit.

Drivers living in flats, terraced houses or properties without private parking often depend on public charging points. Those chargers are subject to different VAT treatment, with public electric vehicle charging remaining standard-rated at 20% under HMRC’s stated policy.

That creates a difference between motorists who can use household electricity and those who need to purchase electricity from a public charging operator.

Critics argue that the gap risks disadvantaging people who live in areas where off-street parking is uncommon. These motorists may have little choice but to use public chargers, even if they would prefer the convenience and lower potential cost of charging at home.

The difference has become particularly sensitive as the Government seeks to encourage more people to adopt electric vehicles.

For some households, the decision to switch depends on whether the total cost of ownership is manageable. The price of the vehicle is only one consideration; charging costs, insurance, depreciation and access to reliable infrastructure also matter.

If the cheapest charging option is available mainly to people with private parking, the transition could prove more expensive for residents who live in densely populated areas.

Is there a new driveway fee?

The distinction between a tax change and a property charge is important.

The October measure concerns VAT on qualifying domestic electricity. It does not, by itself, introduce a general £14.90 fee for having a driveway.

Drivers should therefore be cautious about headlines that suggest every household with a driveway must pay a new charge or complete a new registration process.

The amount of money an individual saves or spends will depend on the relevant electricity prices and the amount consumed. A specific figure should be checked against the underlying calculation before being treated as a confirmed cost.

For homeowners considering a new electric vehicle charger, separate installation expenses and local requirements may still apply. These are not the same as the VAT change to household electricity.

Anyone considering installing a charger should check the arrangements with their electricity supplier, charger installer and local authority where necessary.

Could the rule encourage more people to charge at home?

The lower VAT rate may make home charging marginally more attractive, although the overall saving will depend on a driver’s electricity use and tariff.

Home charging can offer several advantages. Drivers can often recharge while their vehicles are parked overnight, avoid repeated journeys to charging stations and plan their energy use around cheaper periods when their tariff allows it.

But installing a charger is not always straightforward. Some properties require electrical upgrades, and people who rent their homes may need permission from a landlord.

Even homeowners with driveways can face restrictions linked to the location of the charger, the condition of the property’s electrical system or the cost of installation.

The Government has also been considering changes to planning rules to make certain electric vehicle charging installations easier, including systems designed to let a cable cross a pavement safely.

Such arrangements could help some people without off-street parking access domestic charging, but they are not suitable for every street or property. Local authorities retain an important role in ensuring that pavements remain safe and accessible.

Expanding practical access to charging will be important if the financial benefits of electric vehicles are to reach a wider range of households.

What happens to public charging prices?

The VAT reduction on domestic electricity does not automatically lower the price charged at public electric vehicle charging stations.

Public charging operators have their own operating expenses, which can include electricity procurement, equipment, maintenance, network connections, land costs and payment systems.

The tax treatment is therefore only one part of the difference between home and public charging prices.

Industry representatives have argued that reducing VAT on public charging could help narrow the gap and make electric vehicles more affordable for drivers who cannot install home chargers.

The Government has faced calls to review public charging costs and consider options for reducing the burden on consumers. However, any change would need to be announced and implemented separately; the domestic electricity measure alone does not establish a new lower VAT rate for public charging.

For motorists, this means it remains important to compare the actual prices offered by different charging providers rather than assuming that every charging method will become cheaper at the same time.

What should electric vehicle owners do this week?

Drivers do not need to take special action simply to benefit from the qualifying domestic electricity VAT reduction. The change should be reflected automatically in the treatment of eligible electricity supplies.

However, there are practical steps motorists can take to understand how the policy affects them.

First, check the electricity tariff and the way the supplier calculates charges. The amount saved depends on consumption and the tariff’s terms.

Second, compare the cost of charging at home with nearby public charging points. The cheapest option can vary by provider, charging speed and time of day.

Third, if a home charger is being considered, obtain a clear installation quote and check whether permission or other requirements apply.

Finally, treat isolated figures such as £14.90 with care. Without a clear explanation of the period, assumptions and costs included, the figure cannot reliably tell every driver how much the new measure will save or cost.

These steps can help motorists make decisions based on their own circumstances rather than a headline figure alone.

The wider question of fairness

The new VAT measure has highlighted a broader challenge for the Government: how to make the transition to electric vehicles affordable for people with different living arrangements.

Households with driveways may have more opportunities to take advantage of home charging. Those without private parking can face higher costs and fewer convenient options, even when their driving needs are similar.

That difference is not caused by VAT alone. It also reflects the availability of chargers, electricity tariffs, installation costs and the layout of residential streets.

A longer-term solution may therefore require a combination of measures, including better access to residential charging, clearer pricing and a review of the tax treatment of public charging.

The Government will also need to communicate the effects of its policies clearly. Drivers should be able to distinguish between a genuine new legal requirement, a change to tax rates and a headline estimate based on particular assumptions.

For now, the October measure is a temporary reduction in VAT on qualifying domestic electricity—not a blanket £14.90 driveway charge. Its financial impact will differ from household to household, and public charging continues to be treated separately.

The central issue remains whether the benefits of cheaper domestic electricity can be matched by improvements for motorists who do not have private parking. How the Government addresses that gap will help determine whether electric vehicle ownership becomes more accessible across Britain’s varied communities.