The UK government has allocated £100 million to help reduce the cost of public electric vehicle charging, with a particular focus on drivers who rely on lower-powered chargers near their homes. The funding, announced as part of the 2026 Autumn Budget, will be distributed over two years from spring 2027 and is expected to help eligible motorists save approximately £150 annually.
The initiative targets users of residential charging facilities, including lamppost-mounted and pavement-based charge points. These installations are particularly important for households without off-street parking, which often have limited access to cheaper domestic electricity rates for charging their vehicles.
According to the Treasury, the funding will support drivers using chargers typically located on residential streets, where vehicles can remain connected for several hours or overnight.
Public Charging Costs Have Increased
The funding follows an independent review of public EV charging costs commissioned under the 2025 Budget. The review found that prices at lower-powered alternating current (AC) chargers had increased by 69 per cent in real terms since 2021.
Costs at high-powered direct current (DC) charging facilities, including those at motorway service stations, rose by 94 per cent over the same period.
The review identified tariff porting as one potential way to reduce charging expenses. Alongside other measures, this approach could lower local public charging costs by between 15p and 20p per kWh.
However, the government has not yet explained how the £100 million programme will translate into lower prices for drivers. Details remain unclear on whether the funding will be used to subsidise charge point operators, reimburse discounts offered to customers or establish another financial support mechanism.
Industry Taskforce to Examine Tariff Porting
Alongside the funding commitment, the government plans to establish an industry-led taskforce to investigate tariff porting.
The concept would allow drivers to access their domestic electricity tariff at selected public charging points, potentially narrowing the price gap between charging at home and using residential public infrastructure.
The Department for Transport is expected to provide further details about the taskforce and its work in due course.
If implemented, tariff porting could offer an alternative to direct subsidies by allowing eligible public charging users to benefit from electricity prices closer to those available to households with private charging facilities.
VAT Difference Remains a Concern
The Budget announcement does not include a reduction in VAT on public EV charging, which remains subject to the standard 20 per cent rate.
Domestic electricity has generally been subject to a reduced 5 per cent VAT rate, although this has been temporarily lowered to zero from October 2026. The government instead plans to introduce legislation clarifying the 20 per cent VAT treatment of publicly accessible and workplace charging from 1 November 2026.
The difference between domestic and public charging tax rates has been a longstanding concern for the charging industry. Operators and industry representatives have argued that the disparity places drivers without driveways at a financial disadvantage because they cannot readily access lower-cost household electricity for vehicle charging.
Further Support for Households Without Driveways
Earlier in November 2026, new rules came into force in England allowing eligible cross-pavement charging channels, commonly known as charging gullies, to be installed without planning permission.
Authorities estimate that the change could save households up to £300. The measure is intended to make it easier for residents without off-street parking to connect their vehicles to domestic electricity supplies rather than depend entirely on public charging networks.
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Together, the charging-cost funding, proposed tariff-porting initiative and changes to cross-pavement installations represent further government efforts to address the cost challenges facing EV drivers who cannot charge at home through conventional private facilities. However, the impact of the £100 million programme will depend on the funding mechanism and the detailed arrangements that are yet to be announced.