Andy Burnham’s new £40 rule change affecting motorists with driveways is set to come into effect in a matter of days. VAT rates on domestic electricity are set to be slashed from October 1 in one of the new Prime Minister’s first major policy pledges.
VAT will be cut from 5% to 0% at home, promising to save billpayers money in a massive boost for cash-strapped families. The move could also help electric car owners, with those already charging at home likely to save even more money.
According to experts at Andersen EV, motorists could save as much as £40 per year under Mr Burnham’s new plan. David Martell, CEO of home charger company, Andersen EV, said: “For the average EV driver charging at home, the saving on charging alone is likely to be around £20–£25 per year. For higher-mileage drivers, it could be closer to £35–£40.
“That may not sound transformational on its own, but it’s the direction of travel that matters. It demonstrates a willingness to support the transition with practical measures that make a real difference to consumers.”
Motorists could save even more, with previous analysis from Carwow revealing that the cost of topping up a 100kWh battery would drop from £26.11 to just £24.87. According to Carwow, road users who plan to top up their car battery at home at least once per week could be expected to save around £65.
Siobhan Doyle, consumer writer at Carwow said: “The proposed VAT cut on household electricity is a welcome boost for drivers who rely on home charging.”
Previous data from ZapMap shows that 67.2% of UK homes have access to a driveway or dedicated parking space close to their house. This would suggest that as many as 19 million households have the capability to charge at home.
However, this means that 32.8% of houses in the UK don’t have access to a driveway, with road users likely forced to use public charging cables to top-up their cars.
This can be costly, with electricity at public bays charged at 20% VAT in a major blow. Road users can expect to pay as little as 7p per kWh at home, compared to over 50p per kWh at a public charging plug.
