Burnham's VAT cut on electricity bills will make EV ownership even less appealing for millions of drivers who don't have driveways

One of the biggest hurdles limiting electric car uptake in Britain is the running cost premium for those who do not have a driveway.For motorists living in properties with no off-street parking facilities - which accounts for around a third of UK households - the cost to charge an electric vehicle is typically four times higher than for those with wallboxes that tap into domestic energy tariffs.This is due to the higher cost of accessing the public charging network, which is also levied at a higher 20 per cent VAT rate compared to just 5 per cent for domestic electricity.And the charging cost gap will soon widen.In his first act as Prime Minister, Andy Burnham announced on Tuesday that he will slash VAT on domestic electricity bills from October.While this will benefit the vast majority of existing EV owners who typically charge at home, it threatens to make EV ownership far less inviting for nine million people without driveways who would see no financial benefit from the tax cut.On Tuesday, the new PM announced he will provide relief to families needing financial 'breathing room' by removing 5 per cent VAT from household electricity bills for six months. The Government claims the £850million needed to pay for the measure will be generated by axing the contentious ID cards scheme.EV industry experts say the measure will 'only amplify the VAT penalty' for those who simply don't have a driveway and extend the driveway divide in EV ownership in the UK. Andy Burnham's six-month VAT cut to electricity bills will significantly benefit EV owners who can charge at home. But for drivers without driveways, it will further extend a running cost gapThe VAT cut, introduced on 1 October, is aimed at offsetting the expected increase in the Ofgem energy price cap from the same day.'Westminster has not been working for people for too long, with families struggling with the cost of living,' Keir Starmer's replacement said in a statement yesterday.'We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope.'So, how much of a charging cost gulf will this create? The current energy price cap for households on a standard variable tariff from 1 July to 30 September is 26.11p per kWh. At this price, a 100kWh EV would cost £26.11 to charge from 0 to 100 per cent.However, for those with a dedicated EV tariff, which provides ultra-low charging rates at off-peak times, the cost to recharge the same electric car with a 100kWh battery could be as low as £7.Compare this to the public network and costs are substantially inflated.For EV owners without off-street parking access, the average cost to charge is around 83p per kWh. This means a 100kWh EV would cost £81 to charge from empty to full, while a 50kWh EV would cost £40.50.With the domestic 5 per cent VAT cut coming into force in October, this price disparity will only widen.For the typical electric car driver, the tax relief will save them between 24p and 78p per charge on average. On his first day on the job at number 10, Burnham said he will be 'taking immediate action to cut taxes on energy bills to put more money in people's pockets and bring back hope' For the typical electric car driver, the tax relief will save them between 24p and 78p per charge'End this charging postcode lottery' Various EV industry insiders have said the tax cut will make EVs even more appealing to the majority who have off-street facilities at home but far less attractive to those who are reliant on public charging infrastructure.Vicky Edmonds, CEO of electric car owner advocacy group EVA England, said: 'Cutting VAT on household energy bills is welcome news. For EV drivers who charge at home, it will make cars that can already save them thousands of pounds even cheaper to run.'But millions of EV drivers without a driveway will not fully benefit because they can't easily access home charging.'The Government's Cost of Public Charging Review must now deliver real structural reform to bring down prices at the chargepoint.'John Lewis, chief executive of char.gy, said Burnham's tax cut 'throws the unfairness of the current VAT system into even sharper focus'.He added: 'Drivers who rely on public charging, often because they don't have a driveway, will still pay 20 per cent VAT for exactly the same electricity.'If Government is serious about making the EV transition work for everyone, the next step has to be equalising VAT on public charging. The electricity is the same. The tax treatment should be too.'Guy Bartlett, CEO of the Believ public charging network, added: 'EV drivers who can't charge at home and rely solely on public charging continue to face an increasing VAT penalty simply because they don't have a driveway.'It's time to end this postcode lottery and align VAT on public charging with home energy to make EVs more affordable for everyone.' Based on current energy prices, charging an EV with a 100kWh battery from 0-100% costs just over £26 To complete a 0-100% charge on the same vehicle using the public network typically costs £81 - more than three times as much as plugging in at homeBritain's EV ownership driveway divideLatest figures suggest there are 28.4 million households in the UK.Some 67.2 per cent of these properties have access to a driveway or dedicated parking space close to their house, resulting in some 19 million households being able to take advantage of cheaper EV charging costs.This makes these people more likely to want to switch to an EV, which would almost always be cheaper to run than an equivalent petrol or diesel car in this scenario.However, for the 32.8 per cent - around 9 million households - who do not have access to a driveway, Burnham's VAT cut is only going to make them want to stick with their combustion-engine cars for longer.And the latest data shows that there's a huge swing in EV ownership towards those who can have a wallbox fitted at their homes. According to the Department for Transport's most recent EV Driver Tracker report, nine in ten (91 per cent) current electric car owners in the UK have access to charging at home.This means drivers who live in terraced properties and flats account for just 9 per cent of the nation's EV ownership pool. Daily Mail and This is Money have contacted the Treasury for comment. VIDEO ELECTRIC CAR VIDEOS Watch video Volkswagen unveils new ID.Cross EV to battle Chinese rivals Watch video Honda Super-N: Will the sub-£19k EV take on the Renault 5? Watch video Daily Mail's Freda Lewis-Stempel tested the new £90k Polestar 5 Watch video Was this the Pope getting world's first Ferrari Luce road-test? 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