{"id":2855429,"version":0,"headline":"UK VAT cut widens EV charging access gap","dateModified":"2026-07-22T17:14:03Z","datePublished":"2026-07-22T13:54:48Z","articleBody":"

The UK's decision to remove value added tax (VAT) from household electricity bills could make electric vehicle (EV) home charging more affordable but widen the gap between drivers with access to home charging and those who depend on public chargers.

The tax cut was announced on 21 July by Prime Minister Andy Burnham and will reduce the VAT on household electricity bills from 5pc to 0pc from 1 October.

Home charging is already the cheapest way to run an EV. Charging an EV at home in the UK cost around 7p/km in May, against 26p/km using ultra-rapid public chargers, a gap that is widening (see graph).

Around 77pc of UK EV drivers have access to a home charger, while the remaining 23pc rely on public charging infrastructure, according to estimates from charging data provider Zapmap.

And across the UK as a whole, 67.2pc of UK households have access to a driveway or dedicated parking space suitable for installing home charging, according to consultancy Field Dynamics. This lack of access to home charging space could limit EV uptake, regardless of policies to make home charging more affordable.

The tax cut therefore favours a group that is already over-represented among EV owners. Charging operators have previously argued that policy support can disproportionately benefit motorists able to charge at home, while drivers relying on public infrastructure face higher running costs.

Public charging access is still growing. The UK had more than 121,000 public chargers at the end of June 2025, according to Zapmap, with most recent additions being higher-power units. And around one-quarter of households without driveways were within a five-minute walk of a public charger in 2024, up from 12pc in 2020, according to Field Dynamics estimates.

The EU is facing a similar challenge as incentives continue to support EV uptake, but increasing adoption will depend on giving drivers without private parking access to convenient and affordable charging.

In the EU, attention has increasingly shifted from charger numbers to network coverage. Public charging points in the EU reached more than 1.1mn this year, up from about 199,000 in 2020, driven particularly by growth in direct-current fast-charging infrastructure (see graph).

Germany and France have the most fast chargers, while the Netherlands continues to dominate lower-power AC charging as it focuses on residential charging (see graph).

EU countries have also moved ahead of charging targets set under the EU's Alternative Fuels Infrastructure Regulation (AFIR), which links charging deployment to EV uptake and coverage along major transport corridors.

The EU has exceeded AFIR fleet-based charging targets by more than 180pc on average, while 79pc of the bloc's TEN-T core network — its main motorway routes — now meet distance-based requirements, according to clean energy think-tank Transport & Environment.

EV charging buildout supports incremental demand for copper, aluminium and rare earth magnets used in charging cables, power electronics and motor components.

By Chris Welch

UK public and home charger buildout

EV public chargers by speed

Running costs - ICE versus EV pence per mile
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The UK's decision to remove value added tax (VAT) from household electricity bills could make electric vehicle (EV) home charging more affordable but widen the gap between drivers with access to home charging and those who depend on public chargers.

The tax cut was announced on 21 July by Prime Minister Andy Burnham and will reduce the VAT on household electricity bills from 5pc to 0pc from 1 October.

Home charging is already the cheapest way to run an EV. Charging an EV at home in the UK cost around 7p/km in May, against 26p/km using ultra-rapid public chargers, a gap that is widening (see graph).

Around 77pc of UK EV drivers have access to a home charger, while the remaining 23pc rely on public charging infrastructure, according to estimates from charging data provider Zapmap.

And across the UK as a whole, 67.2pc of UK households have access to a driveway or dedicated parking space suitable for installing home charging, according to consultancy Field Dynamics. This lack of access to home charging space could limit EV uptake, regardless of policies to make home charging more affordable.

The tax cut therefore favours a group that is already over-represented among EV owners. Charging operators have previously argued that policy support can disproportionately benefit motorists able to charge at home, while drivers relying on public infrastructure face higher running costs.

Public charging access is still growing. The UK had more than 121,000 public chargers at the end of June 2025, according to Zapmap, with most recent additions being higher-power units. And around one-quarter of households without driveways were within a five-minute walk of a public charger in 2024, up from 12pc in 2020, according to Field Dynamics estimates.

The EU is facing a similar challenge as incentives continue to support EV uptake, but increasing adoption will depend on giving drivers without private parking access to convenient and affordable charging.

In the EU, attention has increasingly shifted from charger numbers to network coverage. Public charging points in the EU reached more than 1.1mn this year, up from about 199,000 in 2020, driven particularly by growth in direct-current fast-charging infrastructure (see graph).

Germany and France have the most fast chargers, while the Netherlands continues to dominate lower-power AC charging as it focuses on residential charging (see graph).

EU countries have also moved ahead of charging targets set under the EU's Alternative Fuels Infrastructure Regulation (AFIR), which links charging deployment to EV uptake and coverage along major transport corridors.

The EU has exceeded AFIR fleet-based charging targets by more than 180pc on average, while 79pc of the bloc's TEN-T core network — its main motorway routes — now meet distance-based requirements, according to clean energy think-tank Transport & Environment.

EV charging buildout supports incremental demand for copper, aluminium and rare earth magnets used in charging cables, power electronics and motor components.

By Chris Welch

UK public and home charger buildout

EV public chargers by speed

Running costs - ICE versus EV pence per mile
","lead":"The UK's decision to remove value added tax (VAT) from household electricity bills could make electric vehicle (EV) home charging more affordable but widen the gap between drivers with access to home charging and those who depend on public chargers.","cmsId":"24875212","source":"Censhare"}