Government urged to cut VAT on public EV charging to end ‘unfair’ two-tier system

The Government has been urged to cut VAT on the cost of public electric car charging or risk blocking its own ambition to persuade drivers to switch to EVs.

Campaigners say that the current system, where VAT at public chargers is four times higher than on a domestic charger, is creating an “unnecessary” barrier to the uptake of EVs, particularly among drivers without off-street parking.

They want the current 20% rate on energy at public facilities cut to match the 5% domestic rate which applies to drivers who charge at home.

Campaign group FairCharge, which is being led by TV motoring expert Quentin Willson, argues that cutting VAT will create a fairer environment for the estimated 38% of drivers who aren’t able to charge an EV at home.

Willson, who previously co-founded the FairFuel group, said the disparity in VAT rates “isn't just unfair, it's a policy mistake that will hinder EV take-up and impact on exactly those who we want to see enjoy the benefits of an EV”.

He added that owning an EV must be “affordable and practical for hard-pressed families and businesses”, but some Government decisions “have done nothing to help expand EV use beyond the wealthy”.

The campaign, which is being backed by the RAC, also wants to see fairer pricing at public charging points, where prices can range from free to as much as £240 for a full charge. It argues that reasonable pricing at public chargers will make it easier and more affordable for drivers without at-home charging, as well as making longer journeys more managable.