Uploaded July 2026 | Updated September 2026, 2 weeks ago
Driveway EV Owners Could Save £40 Under Burnham’s Electricity Tax Cut
Electric-car owners charging at home could save up to £40 annually when Andy Burnham’s government removes VAT from domestic electricity on 1 October.
The six-month measure cuts household electricity VAT from 5% to zero. Home-charger company Andersen EV estimates average EV motorists will save £20–£25 annually, rising to £35–£40 for higher-mileage drivers.
Using Ofgem’s current rate of 26.11p per kWh, charging a 100kWh battery would fall from £26.11 to approximately £24.87. A weekly full charge could theoretically save about £65 yearly, although October electricity prices and individual tariffs will determine the real figure.
The policy exposes Britain’s charging divide. Electricity supplied through public chargers will remain subject to 20% VAT, leaving motorists without driveways paying considerably more than homeowners charging privately.
The wider tax cut is expected to reduce the typical household’s annualised bill by around £45. However, it is currently funded only until March 2027, with any extension awaiting the Budget.
Driveway owners gain another EV advantage. Flat-dwellers are still waiting for tax fairness.
Driveway EV Owners Could Save £40 Under Burnham’s Electricity Tax Cut
Electric-car owners charging at home could save up to £40 annually when Andy Burnham’s government removes VAT from domestic electricity on 1 October.
The six-month measure cuts household electricity VAT from 5% to zero. Home-charger company Andersen EV estimates average EV motorists will save £20–£25 annually, rising to £35–£40 for higher-mileage drivers.
Using Ofgem’s current rate of 26.11p per kWh, charging a 100kWh battery would fall from £26.11 to approximately £24.87. A weekly full charge could theoretically save about £65 yearly, although October electricity prices and individual tariffs will determine the real figure.
The policy exposes Britain’s charging divide. Electricity supplied through public chargers will remain subject to 20% VAT, leaving motorists without driveways paying considerably more than homeowners charging privately.
The wider tax cut is expected to reduce the typical household’s annualised bill by around £45. However, it is currently funded only until March 2027, with any extension awaiting the Budget.
Driveway owners gain another EV advantage. Flat-dwellers are still waiting for tax fairness.
