Motorists without access to their own driveways could be forced to splash out £216 due to Andy Burnham’s new rule. The Prime Minister has cut VAT rates on domestic electricity, with fees slashed from 5% to 0% from October 1 in a hefty saving for households.

As well as cutting electricity bills, the new policy is set to have a knock-on effect for EV owners, with road users benefitting from lower costs to charge up their vehicles.

According to new data from New Automotive, drivers on a standard tariff will save £27 per year under the new policy. However, the updates don’t do anything for road users who don’t have access to off-street parking or their own driveway with VAT still sitting at 20%.

It means these road users will have to fork out over £200 in VAT costs while those who have their own chargers save money, widening the driveway divide across the UK.

Speaking exclusively to The Express, Ben Nelmes, CEO of New Automotive said: “Drivers who rely entirely on public charging get nothing from the cut and can pay around £216 a year in VAT just to charge their car. Cutting public charging VAT would be a sensible and quick way to start reducing costs for motorists and making it more attractive to go electric.”

Previous data from ZapMap shows that only 67.2% of UK homes have access to a driveway or dedicated parking space for an EV.

However, this means that 32.8% of houses in the UK don’t have access to off-street parking, meaning these road users are forced to use public charging cables.

The motor industry has repeatedly called for VAT rates to be brought into line, with many EV experts wanting to see the 20% VAT rate on public chargers scrapped. Robin Heap, CEO of EV charging firm Zest warned that the new VAT cut “risks widening the gap for everyone else”.

He added that drivers who rely on public, workplace and destination charging “should not pay a tax penalty simply because they cannot plug in at home”.

Tanya Sinclair, CEO of Electric Vehicles UK told The Express: “Drivers without a driveway still pay 20% VAT to charge in public, meaning those with the fewest options continue to pay the most.”

Drivers Without Driveways Face £216 Bill Under Andy Burnham’s New Rule

Drivers without driveways are facing renewed concerns over the cost of owning an electric vehicle, after a change to electricity VAT rules exposed a growing divide between motorists who can charge at home and those who depend on public charging networks.

The controversy centres on a reported £216 annual VAT cost for drivers who rely entirely on public charging points. While the new policy reduces VAT on domestic electricity from 5% to 0%, motorists using public chargers continue to pay the standard 20% rate. The result is a significant difference in the tax treatment of electric vehicle charging, depending on where drivers live and how they park their cars.

The issue has placed renewed pressure on Andy Burnham’s government to explain how its policies will affect ordinary motorists, particularly those living in terraced houses, flats and urban neighbourhoods where private driveways are uncommon.

For drivers who can charge an electric vehicle overnight at home, lower domestic electricity costs offer a financial advantage. For those without off-street parking, however, the promised savings may remain out of reach.

The debate raises a broader question about the affordability of Britain’s transition to electric vehicles: should motorists pay different rates of VAT simply because some have access to a driveway while others do not?

Why some drivers could face a £216 annual cost

The reported £216 figure highlights the financial disadvantage faced by motorists who depend entirely on public charging infrastructure.

Public charging generally costs more per unit of electricity than charging at home, partly because operators face different costs and because the VAT rate applied to public charging is higher.

Under the reported figures, a driver relying on public chargers could pay approximately £216 a year in VAT on charging, while motorists using domestic electricity could benefit from the reduction in the household rate.

The precise amount paid by each driver will depend on annual mileage, vehicle efficiency, charging prices and how frequently the car is charged. The £216 figure should therefore be understood as an estimate rather than a universal bill for every driver without a driveway.

Nevertheless, it illustrates a genuine concern for people who cannot conveniently connect their vehicles to their home electricity supply.

For a household already facing high housing costs, energy bills and everyday expenses, the difference can influence whether switching to an electric vehicle appears financially worthwhile.

The driveway divide is becoming harder to ignore

Access to off-street parking is one of the practical advantages that can make electric vehicle ownership cheaper and more convenient.

A homeowner with a driveway can often install a dedicated charger and take advantage of domestic electricity tariffs. Charging overnight can also reduce the need to visit public charging stations during the working day.

Drivers without driveways face a different situation. They may need to use public chargers near their homes, at supermarkets, in workplace car parks or at destination charging locations.

Availability varies considerably by neighbourhood. Some streets have several public chargers, while others have few convenient options. Drivers may have to walk a considerable distance after connecting their vehicles, wait for a charger to become available or pay higher prices for faster charging.

These differences mean that two motorists driving similar vehicles and covering the same distance can face noticeably different running costs.

The concern is particularly relevant in densely populated urban areas, where terraced housing and apartment buildings are common and private parking is limited.

Critics argue that policies intended to encourage electric vehicle adoption should account for these differences rather than assuming every household can install a charger at home.

Why the VAT change has sparked criticism

The reduction in VAT on domestic electricity is intended to lower costs for households. However, because public charging continues to attract a 20% VAT rate, the change does not provide an equivalent benefit to drivers who rely on commercial charging networks.

Industry representatives have argued that this creates an uneven playing field.

Their argument is that the tax treatment of electricity used to charge an electric vehicle should not depend so heavily on whether the electricity comes through a domestic supply or a public charging point.

For motorists without driveways, the distinction can feel particularly unfair. They may have chosen an electric vehicle partly because of its environmental benefits, yet find themselves paying more to charge it because their housing arrangements prevent them from accessing cheaper domestic electricity.

Charging operators and industry groups have called for the Government to consider reducing VAT on public charging, bringing the rate closer to the treatment of household electricity.

Supporters of reform argue that doing so could reduce costs for drivers who have fewer alternatives and help make electric vehicles more attractive to a wider section of the population.

The Government, however, would need to consider the potential impact on tax revenue, the practical implementation of any change and how the policy would interact with other measures intended to support household finances.

What does this mean for electric vehicle ownership?

The cost of charging is an important consideration when comparing electric vehicles with petrol and diesel cars.

Electric vehicles can offer lower running costs in some circumstances, particularly when owners can charge at home using relatively inexpensive electricity. They may also have different maintenance requirements from conventional vehicles.

But the financial calculation changes when drivers depend on public charging.

Public charging prices vary by provider, location, charging speed and payment arrangement. Rapid charging can be especially expensive compared with overnight domestic charging, although it offers convenience for drivers who need to recharge quickly.

A motorist without a driveway may therefore need to calculate not only the purchase price of a vehicle but also the likely cost and availability of charging throughout the year.

For people who regularly travel long distances, the difference can become particularly important. Drivers covering fewer miles may experience a smaller overall impact, although the convenience of nearby charging remains a consideration.

The reported VAT disparity adds another factor to that calculation and may influence the decisions of households considering whether to switch to an electric vehicle.

Could charging cables across pavements offer a solution?

One possible option for some households without driveways is an approved system that allows electricity cables to cross the pavement safely.

Government plans have sought to make it easier for residents to use suitable cross-pavement charging solutions without requiring a separate planning application in every case. Such systems must still comply with applicable safety requirements and local highways arrangements.

The objective is to allow people to charge vehicles using domestic electricity without creating dangerous obstructions for pedestrians.

However, this solution will not work everywhere. Pavement width, street layout, accessibility requirements, property restrictions and local rules can all affect whether an installation is suitable.

Recent changes have also created additional obstacles for some properties in conservation areas, where particular installations may still require planning permission. Residents in those locations may face a more complicated process before they can use a home-charging arrangement.

For households where an approved system is possible, cross-pavement charging could help reduce reliance on public charging stations. But it is not a universal answer for people living in flats, narrow streets or properties without suitable access.

The Government will therefore need to consider several approaches if it wants to make home charging more accessible.

Public charging infrastructure remains essential

Even if more households gain access to domestic charging, Britain’s public charging network will remain essential.

Not every driver has a driveway, and many people will continue to depend on shared charging facilities. Public chargers are also important for motorists travelling long distances, visiting unfamiliar areas or needing to recharge away from home.

Expanding the network can improve convenience, but the location and price of chargers matter just as much as the total number installed.

A charger that is too far from a driver’s home may offer little practical benefit. Likewise, a network that provides adequate coverage but charges substantially more than domestic electricity may leave some motorists facing high running costs.

Local authorities, energy companies and private charging operators all have a role in addressing these challenges.

More consistent pricing information, reliable equipment and better coverage in residential areas could help drivers plan journeys and compare costs. Competition between providers may also improve value, although the extent of any savings will depend on local market conditions.

The Government must decide whether its role should focus primarily on expanding infrastructure or whether tax policy should also be used to reduce the cost difference between home and public charging.

Is the policy undermining the transition to electric cars?

The controversy comes at a time when governments are seeking to encourage the adoption of vehicles with lower tailpipe emissions.

For that transition to succeed, electric vehicles need to be practical and affordable for people with different incomes, housing arrangements and driving requirements.

If the cheapest charging option is effectively available only to households with suitable parking, some drivers may conclude that switching is financially unattractive.

That does not mean electric vehicles are necessarily more expensive to operate in every circumstance. The total cost depends on purchase price, depreciation, insurance, mileage, electricity prices and charging habits.

However, unequal access to low-cost charging could make the transition less accessible to households living in flats or streets without private parking.

Industry representatives argue that addressing the VAT difference would help prevent these drivers from being placed at a disadvantage.

A broader approach could combine tax reform with investment in residential charging, suitable cross-pavement systems and more affordable public infrastructure.

Such measures would need to be assessed carefully to determine their cost, effectiveness and distribution of benefits.

What should Andy Burnham’s government do next?

The immediate question is whether ministers will reconsider the difference between VAT on domestic electricity and VAT on public electric vehicle charging.

Supporters of a reduction argue that a more consistent rate would help drivers without driveways and remove a financial obstacle to electric vehicle ownership.

The Government could also examine whether additional support is needed for residents who cannot install private chargers. Options might include improving access to residential charging, supporting suitable on-street infrastructure or reviewing the rules affecting cross-pavement systems.

Any changes would need to balance affordability, public finances, safety and the practical needs of different communities.

Ministers should also ensure that claims about potential savings are clearly explained. An estimated annual VAT cost of £216 may illustrate the problem, but individual motorists will pay different amounts depending on their charging patterns and the prices they face.

Transparent comparisons would help households understand the real financial consequences of the policy and allow the Government to evaluate whether its measures are working.

A growing test of fairness

The £216 controversy highlights a challenge that extends beyond electric vehicles. Policies designed to support households can have very different effects depending on where people live and what facilities they can access.

For motorists with driveways, lower domestic electricity VAT can provide a direct benefit. For those dependent on public charging, the same change may offer little or no relief from the VAT they pay when charging their vehicles.

That difference has fuelled calls for a review of the tax treatment of public charging and a wider effort to improve access to affordable electricity for electric vehicles.

The Government now faces a choice about how to respond. It can retain the current distinction, pursue further changes to charging infrastructure or consider tax reforms intended to narrow the gap between motorists who can charge at home and those who cannot.

Whatever approach it takes, the key question is whether the transition to electric vehicles can remain affordable for households across different types of housing.

For drivers without driveways, the issue is straightforward: they want the opportunity to benefit from lower running costs without being penalised by circumstances they cannot easily change. Whether the Government addresses that concern will be an important measure of how effectively its electric vehicle policies serve the wider public.