'Lower-income households' most affected by UK driveway rule

Families on lower incomes will be among the most affected by a simple UK driveway rule that many are likely unaware of. Motorists topping up their electric cars at home pay just 5% VAT on their charge, while those charging at public stations pay 20% VAT.

This extra charge has become known as the 'pavement tax', as motorists are effectively forced to pay more to charge their batteries on the side of a road than at home. On top of this, electric car owners can benefit from lucrative night tariff rates at home, something again inaccessible to those relying on rapid plugs at the height of rush hour.

It means motorists without the luxury of their own driveway face the threat of paying much higher fees to use the same vehicle.

Industry data from Zapmap suggests the difference could be stark, with the typical EV driver without a home charger spending as much as £1,690 per year on charging.

A lower VAT rate in line with home charging could see drivers using public chargers save a whopping £211 per year. But Daniel Kunkel, CEO at GRIDSERVE explained "lower income families" were the ones set to feel the sting.

Daniel said: "Removing VAT from public charging would be a significant move towards levelling the playing field and making EV ownership easier for everyone, no matter where they live.

"The current disparity between the 20% VAT on public EV charging and the 5% on home charging puts a disproportionate financial burden on those without home charging facilities, which could affect more lower-income households."

New GRIDSERVE data shows that cutting costs could even encourage a new spate of electric car registrations. A massive 84% of 18-24-year-olds and 76% of 25-34-year-olds said they'd be more inclined to switch if a more even tax structure was introduced.

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Cost still remains one of the biggest incentives to switching to electric vehicles and lower fees would keep heads turning. The poll found that 36% believe lowering VAT on public charging would make EV ownership more accessible and would in turn accelerate the switch to cleaner vehicles.

Daniel added: "With the government already having recognised the importance of the affordability of EVs and introducing the new Electric Car Grant, we now need to address the cost of public charging.

"Ahead of the Autumn Budget, we urge the government to demonstrate its commitment to fairness and climate action by supporting this change and ensuring public charging is not only reliable and widespread but also equitable for all."