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Fastned calls on Govt to level VAT playing field as public charging found to cost £270 more per year

More than two thirds (68%) of the population stated that this pricing disparity is unfair.

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It is estimated that the 20% VAT difference alone for public charging can amount to more than £270 per driver over the course of a year, in research commissioned by Fastned.

More than two thirds (68%) of the population stated that this pricing disparity is unfair.

Fastned said that changes to VAT on electric vehicle charging coming into force today will deepen the UK’s ‘driveway divide’, as VAT on home energy falls from 5% to 0% across England, Scotland and Wales, while public charging remains at 20%.

Fastned, has teamed up with Ginny Buckley, founder and editor-in-chief at Electrifying.com, to call on the Government to level the playing field on VAT for EV charging and ensure drivers without access to home charging are not left paying more.

With nine million UK households lacking a driveway or dedicated parking space, today (1st October), Fastned hubs across the UK will become a ‘nationwide driveway for the day’.

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All drivers can gain a free £25 charging credit, approximately equivalent to the average cost of a public charging session at Fastned, at all of its 41 charging hubs across the UK.

To claim the free £25 charging credit, drivers need to use the code VAT2026 in the Fastned app.

The discount code can be added to their accounts from 00:01, 1st Oct, until 23:59 on 2nd October 2026 and drivers will then have three days to use the charging credit once applied to their account.

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Buckley said: “By cutting VAT on electricity for EV owners who can charge at home, while continuing to charge 20% VAT on public charging, the Government is driving the transition to electric with one foot on the accelerator and the other on the brake – and any driver will tell you that you don’t get very far doing that.

“Public charging isn’t a luxury – it’s essential infrastructure, and millions of drivers are being punished at the plug with higher prices simply because they don’t have a driveway.

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“That’s why I’ve teamed up with Fastned to call on the Government to end this unfair driveway divide and make charging fair for everyone.”

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To support this campaign, Fastned released research which showed that seven in ten (70%) drivers said paying extra each year because they cannot charge at home would make them less likely to buy an EV, but said that reducing the disparity could encourage more people to make the switch to an electric vehicle.

The six-month cut comes into effect on 1st October, meaning drivers who can charge at home will benefit from lower VAT while those reliant on public charging will continue to pay the higher rate.

Tom Hurst, UK country director at Fastned, said: “There is already a driveway divide between electric vehicle users who can charge at home and those who can’t, which risks making the switch to electric harder for millions of people.

“Today’s VAT change makes this divide even more striking.

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“An electric car should be an option for everyone, regardless of whether you have a driveway, which is why, through our ‘Fastned is MY driveway’ campaign, we’re turning our network into a nationwide driveway for EV drivers and calling on the Government to level the playing field by bringing VAT on public charging down to zero.”

Among drivers who do not currently own a fully electric vehicle, 57% said cutting VAT on public charging to 0%, would make them more likely to consider buying an EV.

Three in five (61%) UK drivers said they were not aware of the difference in tax treatment between home and public charging and two thirds (68%) said they felt it was unfair and penalised those without driveways.

As a result, six in ten (60%) drivers said they would support Government action to bring public charging VAT down to 0%.

The latest Society of Motor Manufacturers and Traders (SMMT) figures for car sales shows that pure electric vehicles now make up 30% of all new car sales, but the research also revealed that this VAT disparity could become a barrier to EV adoption.

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From 1st Oct, at 00:01 Drivers can use the code VAT2026 in the Fastned app to claim £25 charging credit.

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