Andy Burnham’s £20 driveway rule change - started October 1
EXCLUSIVE: Andy Burnham's new October driveway changes have already come into effect with road users already feeling the impact.
Andy Burnham has overseen new driveway updates this October, with new VAT updates that could save road users £20 bright into effect from October 1. As one of his first moves as Prime Minister, Mr Burnham cut VAT rates on domestic electricity supply, with fees reduced from 5% to 0%. The move was intended to help families battling electricity bills, but the decision has had an impact on electric car owners charging at home with fees cut.
David Martell, CEO of home charger company Andersen EV, previously revealed that the average driver charging at home could save around £20-£25 per year. Meanwhile, higher-mileage drivers could save closer to £35-£40. Speaking exclusively to the Express, Michael Golson, motoring expert at Cazoo, suggested the new policy could have an impact on EV demand.
Mr Golson backed the new decision, claiming that the move acts as a “small financial nudge” for those still sitting on the fence around making the switch to EVs. Michael told the Express: “The Prime Minister’s driveway discount sends the right signal to drivers considering the leap to electric.
“Even if it saves them just £20 a year, cutting domestic electricity VAT boosts the appeal of an electric vehicle - further chipping away at the day-to-day running costs associated with switching from petrol or diesel. While it might sound modest, small financial nudges like this carry real psychological weight for buyers on the fence.
"When you combine cheaper home charging with the fact that used EV prices have become genuinely competitive with traditional combustion engines, the barrier to going electric is lower than ever.”
Previous data from ZapMap shows that as much as 67.2% of homes in the UK have access to a driveway or dedicated parking space close to their house. This means that as many as 19 million households might have the capability to charge at home and take advantage of the new savings.
However, Mr Burnham’s plan has been met with some opposition over concerns it widens the “driveway divide” between home and public charging.
Those topping up at public bays still pay 20% VAT, with fees closer to 50p per kWh compared to just 7p per kWh at home.
