A widening gap between the cost of charging an electric vehicle at home and in public is prompting fresh calls for ministers to cut VAT on public chargers. The dispute centres on whether policies that reduce household electricity costs also leave behind drivers who cannot charge off-street.

Reports in the right-wing press say domestic electricity VAT has been cut from 5% to zero, while public charging remains subject to 20% VAT. One analysis put the cost of off-peak home charging at about 2p a mile, compared with roughly 14.9p a mile at retail-park or supermarket chargers, describing the disparity as a growing “driveway divide.”¹

Motoring industry voices broadly share that concern, though they stress accessibility rather than opposition to home-energy relief. Iain Reid, global content director at Carwow, called measures allowing cross-pavement charging solutions a “welcome move,” but said the government could also lower VAT on public charging. A Carwow survey of nearly 2,600 people found 77% believed cheaper public charging would make EVs substantially more accessible for renters and people without private driveways.²

Hippo Leasing has argued that the tax difference “effectively penalises motorists who don't have a driveway,” estimating that aligning public-charging VAT with the former 5% domestic rate could save high-mileage EV drivers about £389 a year.²

Renault UK managing director Adam Wood made a similar case, saying drivers reliant on public networks “need a solution for lower-cost charging.” Renault cited public-charging cost as the biggest frustration and barrier for many Renault 5 owners, while Zapmap research estimated a public-charge-dependent driver could pay £194 in VAT, against £48 for a home charger user.³

The common demand is tax parity, although the reports also point to practical alternatives such as pavement gullies. The unresolved question is whether lowering public-charger VAT will be included in future fiscal decisions.