Andy Burnham unveils 2p EV charging cost per mile
A 0% VAT rate on domestic electricity takes effect from October 1, bringing home EV charging costs to about 2p per mile for drivers on smart tariffs, according…
andy burnham unveils 2p is the headline figure for drivers charging electric cars at home on a smart tariff. A 0% VAT rate on domestic electricity took effect from October 1, lowering the estimated cost to about 2p per mile, Chronicle Live reported.
The change affects people charging cars on driveways or in other off-street parking areas. Drivers on standard home tariffs also benefit from the VAT cut, though the reported per-mile estimate is higher.
How the 2p per-mile figure is calculated
Chronicle Live said calculations from costpermile.co.uk used a typical family electric hatchback or SUV with an average efficiency of 3.5 miles per kWh. For drivers using a smart tariff, electricity costs 7p per kWh under the calculation, equivalent to about 2p per mile.
At an average annual mileage of 10,000 miles, the report puts the electricity bill for those drivers at £200. The figures are estimates based on the stated vehicle efficiency and tariff assumptions.
Standard tariffs cost more. The calculation cited by Chronicle Live puts domestic electricity at 24p per kWh, or 6.9p per mile, with an estimated annual bill of about £690 for the same mileage.
That gap makes the tariff a key part of the potential savings. The VAT change applies to domestic electricity, while the cost per mile varies with the rate paid and the vehicle’s energy efficiency.
Public charging remains more expensive
Drivers relying on public charging points do not receive the same VAT treatment, according to the report. Public EV charging remains subject to 20% VAT, and costpermile.co.uk puts the average charge at a retail park or supermarket at 52p per kWh, or roughly 12.6p per mile.
That difference matters particularly for households without a driveway, which may have fewer options to charge at home. The report does not provide a comparable annual public-charging total, but its per-mile estimate is higher than both home-tariff figures.
Matt Galvin, managing director at Polestar UK, said scrapping VAT on electricity would make owning and charging an electric vehicle more affordable for millions of households. He called it an important first step toward lowering living costs and accelerating the shift to clean transport.
Galvin also said the government should extend five chargepoint grants for households without off-street parking beyond the March 2027 deadline and remove VAT on public charging. Drivers using public chargepoints continue to pay 20% VAT.
Source: chroniclelive.co.uk
