The cost gap between public EV charging versus the cheapest home tariff now stands at up to £1,515 a year.

EV drivers reliant on public charging pay some £1,838 annually to charge, compared to £323 for those with driveways, according to FairChargedriv

Analysis by FairCharge shows that the average cost of charging on the public network is now up to £1,838 a year compared to £323 charging at home on lower night-time rates exclusively on the Octopus Go home charging tariff.

The EV campaign group said the Spring Statement was “a hugely missed opportunity” to reduce the cost burden for the estimated 38% of UK households without driveways.

Those without home charging pay four times the rate of VAT (20%) charging on public networks compared to 5% for domestic charging.

Despite pleas to “axe the Pavement Tax”, the Treasury didn’t address the “illogical and unfair” tax treatment – and FairCharge says it’s a potentially huge setback to EV adoption, infrastructure investment and public health.

Campaign founder Quentin Willson said: “The Treasury is sabotaging the EV revolution by using archaic laws that it refuses to change. The Spring Statement supported fossil fuels with the continuation of the 5p duty cut but offered nothing for EVs. This could have been a low-cost intervention to help grow EV adoption as well as stimulating capital investment in the UK’s public charging infrastructure but, sadly, was brushed aside. The difference between charging at home and on the public network is now as much as 50p per kWh – which, across a year, adds up to such a shocking difference in charging costs.”

The RAC’s Charge Watch analysis found that the cost of charging on the public network has risen by 50% over eight months, particularly hitting EV drivers who don’t have access to private parking spaces or home chargers. As well as the extra 20% VAT burden they also have no access to much cheaper off-peak electricity tariffs.

RAC spokesman Simon Williams said: “The ‘Pavement Tax’ prevents over a third of all households going electric, simply because they can’t charge at home. No one should be penalised just because they don’t have private parking. And with recent rises in charging costs, it’s absolutely right that the Government should end this unfairness now.”

The FairCharge campaign to reduce the VAT rates on public charging is backed by more than 40 cross-party parliamentarians. Chris Skidmore MP, leader of the Independent Net Zero Review, also backed FairCharge’s calls and identified the ‘Pavement Tax’ as a barrier to Net Zero growth.