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UK Treasury Weighs Cuts to Public EV Charging Costs as Pay‑Per‑Mile Tax Triggers Demand Fears

Officials fear the 3p‑per‑mile eVED due in 2028 could deter buyers after an OBR forecast of 440,000 fewer sales.

Overview

  • Reported options include reducing VAT on public charging from 20% to 5% and cutting network and standing charges passed on to drivers.
  • Ministers are also examining targeted relief for motorists without off‑street parking, who pay far more to charge away from home.
  • Data cited in reports show typical prices of about 8p/kWh at home versus roughly 54p/kWh on public units, with some sites hit by standing fees rising from under £100 to nearly £40,000 a year.
  • The eVED would charge EVs 3p per mile and plug‑in hybrids 1.5p from 2028, with average costs estimated at about £255 a year for an EV driver.
  • The government highlights purchase grants of up to £3,750 and over £7.5bn of EV sector investment and says a review of public charging costs is underway.