The government’s decision to cut VAT on domestic electricity from 5% to 0% (part of Andy Burnham’s first costed policy) has sparked concern across the EV sector. While cheaper home energy is welcome, the move widens the gap between home charging and public charging, reinforcing what many call the biggest inequality in the EV transition.
The inequality explained:
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Drivers who can charge at home now pay 0% VAT.
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Drivers who rely on public charging still pay 20% VAT.
That’s a 20‑point difference, and for millions without driveways, it feels like a penalty for living in flats, terraces, rented homes, or urban areas.
Tanya Sinclair (EVUK):
“The prime minister’s first costed policy may have just reinforced one of the biggest inequalities in the EV transition.
The EV Café Takeaway
“You don’t always shop in Waitrose. Sometimes we shop in Aldi and Lidl.” - Sara
“It’s £45 a year… the price of a meal for two. Is it really a big issue?” - John
_"_The VAT cut was designed to reduce electricity costs for all consumers, not to target EV drivers. The EV angle is a side‑effect." - Sam