The move follows an independent review of public charging costs launched under the 2025 Budget. This found that prices for ‘lower-powered’ (AC) chargers had risen by 69 per cent in real terms since 2021. Furthermore, prices at high-powered chargers, such as DC fast chargers found at motorway service stations, also increased by 94 per cent over the same period. The review suggested that tariff porting, alongside other measures, could reduce local public charging costs by 15-20p per kWh.
In this year’s Budget, the government has now confirmed that it will provide £100 million in funding to cut costs for motorists “using lower-powered public chargers near their homes”, with a focus on drivers who lack off-street parking. A Treasury statement said the funding would cover “chargers typically found on residential streets, where drivers can leave their vehicles to charge for several hours or overnight”, adding that it expects to help affected drivers save about £150 per year.
While the pledge may come as welcome news to both current and prospective EV owners, the government has not specified the mechanism by which it hopes to achieve lower charging prices. It is not clear, for example, whether the £100 million will subsidise charge point operators directly, reimburse them for discounts, or if another scheme will be implemented entirely.
Additionally, the government said it plans to establishing an industry-led ‘taskforce’ to investigate ‘tariff porting’; a system that could allow drivers to use their domestic electricity tariff at certain public charge points. The Department for Transport is expected to provide further details in due course.
The announcement stops short of cutting VAT on public charging, which remains set at 20 per cent. Domestic electricity is usually subject to 5 per cent VAT, although this has been temporarily reduced to zero from October 2026. The Budget instead proposes legislation to clarify the 20 per cent VAT treatment of publicly accessible and workplace charging from 1 November 2026. The charging industry has repeatedly called on successive UK governments to address this disparity, arguing that it puts drivers without driveways at a disadvantage.
However, it marks another olive branch from the government towards these drivers. Earlier this month, new rules came into force in England allowing eligible cross-pavement charging channels (or ‘gullies’) to be installed without planning permission, a change that authorities claim could potentially save households up to £300. The change is similarly intended to make it easier for residents to connect their cars to cheaper domestic electricity rates rather than relying on public charging.
