⚡ The short version
Charging an EV at home on an off-peak tariff costs around 2–3p per mile — and from 1 October 2026 the VAT on that electricity has dropped to 0%, cutting the rate from 5%. Charging on the public network still costs roughly 75–92p per kWh with 20% VAT, which is around four to ten times more per mile. Industry body ChargeUK says the gap now exceeds £1,000 a year for drivers who rely on public chargers, with VAT alone worth £200 of that difference.
Almost every EV running-cost debate comes back to the same two numbers: the price of a kilowatt-hour at your house, and the price of a kilowatt-hour on the public network. From 1 October 2026, the gap between them got wider, because VAT on domestic electricity in England, Scotland and Wales fell from 5% to 0% for six months — while VAT on public charging stayed at 20%. This guide breaks down what both sides actually cost in 2026, and how to pick the cheapest option for your own situation.
The two numbers that decide everything
The single biggest determinant of your EV running cost is where you charge, not which car you buy. The arithmetic is straightforward: a home charger on an off-peak EV tariff typically charges overnight at 7p–10p per kWh, while a rapid public charger costs 75p–92p per kWh. That is a difference of roughly ten times per unit — and with the VAT cut, the home figure drops by a further 4.76% (the tax-inclusive price divided by 1.05).
Take a concrete example. On the Intelligent Octopus Go 12M Fixed tariff used by many Tesla and Octopus customers, the displayed rates before 1 October were 8.00p/kWh overnight and 31.32p/kWh daytime. Removing VAT takes those to approximately 7.62p/kWh and 29.83p/kWh. A typical EV doing 7,000 miles a year and charging mostly overnight would save only a few pounds over the winter — but on a standard single-rate tariff the saving is closer to £13, and for a high-mileage driver it can reach £20–£25 over the six months, in line with Government estimates of £8–£25 per year for average EV mileage.
What home charging really costs in 2026
Home charging remains dramatically cheaper than petrol. With petrol averaging 161.5p a litre in Q3 2026, the AA’s UK EV Readiness Index put home charging 66% cheaper per mile than petrol — and the new 0% VAT rate improves that comparison further. LeaseElectric’s worked example is useful: a Volkswagen ID.3 on the EDF Go Electric with Pod Point tariff now costs about 1.89p per mile (down from 1.97p), so a 10,000-mile year costs roughly £189 instead of £198.
The rule of thumb: 2p per mile or less if you can charge overnight on an EV-specific tariff; 4p–6p per mile on a standard daytime household rate. If you do not have an off-peak tariff yet, that is the single biggest lever — switching from a standard variable tariff to an EV overnight tariff typically halves your charging cost, often for a modest fixed-fee increase.
What public charging really costs
The public network is a different market. Ultra-rapid charging in 2026 runs at roughly 75p–92p per kWh — Gridserve’s standard ultra-rapid price, for example, is 85p–92p per kWh. Slow AC destination chargers are cheaper but still typically 30p–50p per kWh, and VAT at 20% applies on top of all of them. Zapmap’s price data shows that off-peak home charging rose just 0.9p/kWh over the past 12 months while slow public charging rose 3p/kWh; rapid charging prices actually fell earlier in the year when MFG introduced a 25% discount (from 79p to 59p per kWh) from 1 July — a promotion that ended on 30 September, so averages are expected to step back up.
The result, per mile: roughly 15% more expensive than petrol on ultra-rapid public charging, according to the AA’s index, versus 66% cheaper at home. That is why ChargeUK’s comparison is so stark — a driver relying on public chargers pays more than £1,000 a year more than an equivalent home-charging driver, with the VAT difference now contributing £200 of that total.
The driveway divide in numbers
This is not a niche problem. ChargeUK and Gridserve both estimate around 10 million UK households have no off-street parking, so they cannot install a home charger at all. Fastned research published on 1 October found 68% of the public thinks the VAT disparity is unfair, 70% of drivers say paying extra each year because they cannot charge at home would make them less likely to buy an EV — and 57% of non-EV drivers say cutting VAT on public charging to 0% would make them more likely to consider one.
The policy response is live: HMRC is appealing a First-tier Tribunal ruling that public charging should qualify for the same reduced rate as domestic electricity, and industry bodies including EVA England, the AA and FairCharge have written to the Prime Minister urging action. Our news coverage of the 1 October VAT cut has the full detail, and if you want to understand how the wider EU–China trade talks could affect the supply of affordable Chinese cars in the UK, our report on the Beijing hybrid-car negotiations sets out the stakes.
How to cut your charging costs without a driveway
If you cannot charge at home, you still have options worth ranking by cost:
| Option | Typical cost per kWh | Notes |
|---|---|---|
| Workplace charging | 20p–40p | Often subsidised by employers; check if your office offers it. |
| Destination / slow AC | 30p–50p | Cheapest public option; best while shopping, eating or parked overnight. |
| Public rapid (50–150kW) | 70p–90p | Fast but pricey; use only when you need range in a hurry. |
| Ultra-rapid (150kW+) | 75p–92p | Some operators offer subscriptions that cut prices by up to 40% for ~£10/month. |
| Lamp-post / on-street | 40p–60p | Growing in cities; slower but much cheaper than rapid. |
Operator subscriptions are the biggest hidden lever for public-only drivers: Tesla Superchargers are increasingly open to all brands at competitive prices, and networks such as Fastned, Gridserve and MFG run monthly plans that cut per-kWh prices significantly for regular users. Our guide to charging an EV without a driveway goes through each option in depth, and the UK charging network overview explains how the public mix is distributed.
Run your own numbers
Tariffs, electricity prices and charging habits vary so much that no table can replace your own maths. The charging cost calculator compares home, public and rapid charging against your annual mileage in minutes, the VED calculator shows road tax from the second year, and the car comparison tool lets you test models with different battery sizes side by side. Find chargers near you on the charging points map and browse efficiency figures on the electric car library before you commit — a car’s kWh-per-100km figure matters just as much as its battery size when the price per kWh varies tenfold.
Sources
GOV.UK / HMRC — Temporary zero rate of VAT in Great Britain for domestic electricity, 8 September 2026 (https://www.gov.uk/government/publications/temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain/temporary-zero-rate-of-vat-in-great-britain-for-domestic-electricity) · Which? — The real impact of soaring fuel prices, 25 September 2026 (https://www.which.co.uk/news/article/how-soaring-fuel-prices-affect-you-and-what-you-can-do-about-it-aDk3V7v9p8Og) · Fleet World — EV ‘driveway divide’ increases to £200, 1 October 2026 (https://fleetworld.co.uk/ev-driveway-divide-increases-to-200-as-home-electricity-vat-drops-to-zero/) · EV Powered — EV drivers set to be affected by VAT changes from today, 1 October 2026 (https://evpowered.co.uk/news/ev-drivers-set-to-be-affected-by-vat-changes-from-today/) · The Independent — Save 20% on Gridserve public charging on 1 October, 30 September 2026 · Tech Torque Media — Home EV Charging Gets Cheaper From 1 October, 29 September 2026 · Zapmap price data, September 2026 · The AA — UK EV Readiness Index Q3 2026.
