Andy Burnham new 7p per kWh driveway rule change — started in October

Andy Burnham new 7p per kWh driveway rule change — started in October The Prime Minister has overseen new updates to driveway rules this October, with road users enjoying new savings. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Luke Chillingsworth , Cars Reporter 07:39, Sat, Oct 24, 2026 Updated: 07:45, Sat, Oct 24, 2026 Andy Burnham has overseen new driveway VAT fees this October (Image: Getty) Andy Burnham has introduced a new 7p per kWh driveway rule change from October, with electric car owners across the country set to be impacted. The Prime Minister cut VAT rates on domestic electricity supply from October 1, with the tweak set to have a knock-on effect for electric car owners. The new rule means that motorists can top-up their electric vehicles for less, with VAT rates cut from 5% to 0% since the start of this month. According to analysis from costpermile.co.uk, motorists charging a standard family electric hatchback or SUV achieving an average efficiency of 3.5 miles per kWh using a home smart off-peak tariff will pay the least. Fees for these drivers will sit at around just 7p per kWh. This works out at around 2p per mile , or £200 per year to use the roads over the course of 10,000 miles. Article continues below ADVERTISEMENT Smart tariffs are increasingly more popular and are designed to charge vehicles at the cheapest possible time such as overnight. This allows motorists to benefit from the absolute cheapest rates and make incredible savings on their road bills. However, those without access to kart charging will also save under Mr Burnham’s new plan, with VAT also axed on the standard domestic tariff. Motorists will now pay as little as 24p per kWh, or around 6.9p per mile to get behind the wheel. Over the course of 10,000 miles, road users would have paid an average of £690. Get motoring news and advice plus selected offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . Mr Bunham has not cut VAT rates on public electricity supplies, meaning those relying on charging bays to fill their battery will still pay hefty rates. According to costpermile.co.uk, motorists charging their cars at an on-street charging bay are paying closer to 44p per kWh per 12.6p per mile. Article continues below ADVERTISEMENT Meanwhile, those relying on chargers at retail parks or supermarkets will pay even more, with average charging costs of 52p per kWh or around 14.9p per mile. Shane Brennan, chief executive officer at ChargeUK, previously warned: “Cutting VAT on home electricity is the right call at the right time, it will relieve some pressure on what will be a tough winter for energy consumers, including EV drivers. Article continues below ADVERTISEMENT New £300 rule for England homes without driveways now in force Petrol and diesel drivers urged to fill up after Wednesday | Express.co.uk Electric car owners with a driveway are set to pay less to charge (Image: Getty) “However, it will also entrench the driveway divide for those current and want-to-be EV drivers who pay the full 20% VAT to charge their cars at the worst moment.” Electric cars Andy Burnham Driveway Energy Energy bills Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments