Half (49%) of non-EV drivers in the UK say they would switch to electric vehicles sooner if public charging carried the same VAT rate as charging at home, according to new research by on-the-go EV charging company GRIDSERVE.
Currently, public charging is taxed at 20%, compared to just 5% for those charging at home. This is placing a greater burden on drivers without access to private charging, often people living in flats or rental properties, who are left paying more tax for the same electricity.
The research found that younger age groups are even more likely to go electric with a lower VAT rate with 84% of 18–24-year-olds and 76% of 25–34-year-olds saying they’d be more inclined to switch under a more even tax structure.
Londoners were also found to be more likely to switch to EVs compared to the wider public with a lower 5% VAT rate, with three in four (77%) saying they would be more likely compared to the national average of almost half (49%). This points towards the lack of off-street parking available to residents in the UK’s big cities.
Two in five (41%) survey respondents believe that it’s unfair that people without home chargers pay a higher VAT rate for charging.
Industry data from Zapmap shows that the typical EV driver without a home charger spends £1,690 yearly on charging, and with a lower VAT rate in line with home charging, these drivers relying solely on public chargers could save around £211 a year.2
EV running costs are already significantly lower for those who mainly use home charging, even with occasional public charging use for longer journeys. Drivers with at-home charging save around £1,000 per year compared to those without home charging, and around £800 compared to typical internal combustion engine (ICE) drivers.
The research findings suggest that cost remains the biggest incentive to switching to electric, as over a third (36%) of Brits believe that lowering VAT on public charging would make EV ownership more accessible and accelerate the switch to electric vehicles, and almost half (45%) want effort from the government to make EV ownership more cost-effective.
GRIDSERVE is calling on the government to address this imbalance and back proposals that would bring the VAT rate on public charging in line with home use, making EV ownership more equitable and accelerating the UK’s shift to net zero.
Daniel Kunkel, CEO at GRIDSERVE, said:
“Removing VAT from public charging would be a significant move towards levelling the playing field and making EV ownership easier for everyone, no matter where they live. The current disparity between the 20% VAT on public EV charging and the 5% on home charging puts a disproportionate financial burden on those without home charging facilities, which could affect more lower-income households.
“Ahead of the MPs debate on VAT rates set to take place on Friday, we urge the government to take this opportunity to demonstrate its commitment to fairness and climate action by supporting this bill and ensuring public charging is not only reliable and widespread but also equitable for all.”
GRIDSERVE Electric Highway expands across the UK and now has over 190 locations with over 1,500 charging bays, all easily accessed through contactless payments, or the GRIDSERVE app, and supported by a 24/7 customer service support centre.
Methodology
- GRIDSERVE commissioned One Poll to survey 2,000 UK adults in June 2025
- Analysis of driver profiles from Zapmap’s April 2025 cost breakdown shows that a typical EV driver without a home charger – who relies entirely on public charging – pays around £1,690 per year to power their vehicle. This total includes 20% VAT, which is applied to all public charging. If VAT were reduced to 5% in line with home charging, the same annual usage would cost approximately £1,479 – a saving of around £211 per year for these drivers. The calculation is based on a pre-VAT spend of £1,408 and assumes the standard VAT formula applied to the public charging cost distribution shown in Zapmap’s typical usage profiles.
