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What the 2026 Budget means for EV charging costs

Written by Matt Ford · Published

The Budget on 28 October 2026 keeps home electricity at 0% VAT until 30 June 2027, while public and workplace charging stays at 20% VAT. Help for drivers without a driveway starts in spring 2027.

1. Home electricity: 0% VAT until 30 June 2027

Electricity for homes in Great Britain has had 0% VAT since 1 October 2026. It was due to end on 31 March 2027; the Budget extended it by three months to 30 June 2027. Northern Ireland stays at 5%.

What it means: charging at home costs less until the end of June 2027. The prices in our calculator already include VAT at 0%. When the relief ends, home prices will go up by about 5% unless it's extended again.

2. Public and workplace charging: 20% VAT, now in law

The government has written into law that electricity from public and workplace chargers is not "domestic use", so it is charged at the standard 20% VAT from 1 November 2026. This confirms what already happened in practice; it isn't a new tax.

What it means: drivers without a driveway pay 20% VAT on every charge, while drivers charging at home pay 0% until mid-2027.

3. £100m to cut prices at local, lower-powered chargers

From spring 2027 the government will spend £100 million over two years to cut prices at lower-powered public chargers near homes, like the ones on residential streets. It says drivers who rely on them will save around £150 a year on average.

What it means: nothing changes yet. The Department for Transport hasn't said how the money will reach drivers. It won't help at rapid chargers.

4. A taskforce on using your home tariff at public chargers

An industry-led "tariff porting" taskforce will look at letting drivers use their cheaper home energy tariff at certain public chargers. The government calls it complex and will set out details later.

What it means: it's an idea being explored, not a promise. We'll report on it as it develops.

5. Standing charges: gas first, electricity later

The Budget asked Ofgem to remove standing charges from household gas bills, in 2027 or as soon as possible after, with the cost moved onto the unit rate. For electricity, the Budget promises reform with details next year, but no removal has been confirmed yet.

What it means: EV tariffs are electricity, so nothing changes for them yet. If electricity standing charges were moved onto unit rates later, tariffs with low unit rates would usually look better, and drivers who charge a lot at home would pay a bit more per kWh. Our calculator already works for tariffs with no standing charge.

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Sources

This is an estimate. Check final prices with the supplier. We don't cover every tariff.

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