What's Changing
An independent review of public charging costs, led by Philip New for the Department for Transport, the Department for Energy Security and Net Zero and HM Treasury, was published on 28 October 2026. It makes five recommendations to the government and says they should be taken forward as a package. They're recommendations only.
The review says that, since 2021, average prices have risen by 69% for lower-powered (AC) charging and 94% for higher-powered (DC) charging, in real terms. It puts the average standard public tariff at 54p/kWh, and the average at rapid and ultra-rapid chargers at 79p/kWh.
Taken together, the review says its measures could be designed to cut local public charging costs by around 15 to 20p/kWh, and public charging more generally by up to 10p/kWh.
The same day, HM Treasury announced £100 million over two years from spring 2027 to cut charging costs at lower-powered public charge points near people's homes. The government puts the saving at around £150 a year for drivers who rely on them.
The government also plans to launch a "tariff porting" taskforce, led by industry experts. It's there to explore letting drivers use their cheaper home energy tariff at certain public chargers. Under the review's idea, the electricity would be billed through your home supplier, plus an access fee for the charger. The Department for Transport is to set out more details in due course.
What Does Charging Cost Per Mile?
Running costs from the October 2026 review, with the VAT rate on each.
| Charging at homeEV-specific overnight tariff | Public chargingRelying on public chargers | PetrolAn equivalent petrol car | |
|---|---|---|---|
| Cost per mile | As low as 2p | 17p to 20p, at a mix of powers | 22p |
| VAT | Temporary zero rate in Great Britain from 1 October 2026 | Standard 20% rate | Full 20% rate |
From the Cost of public electric vehicle charging review (28 October 2026) and HMRC Revenue and Customs Brief 13 (2026), checked 30 October 2026. Figures are from the review, at prices when it was published.
When It Starts And Who It Affects
Both the review and the £100 million announcement were published on 28 October 2026. The price support runs for two years from spring 2027. No start date has been given for tariff porting: the taskforce is to explore it, and the Department for Transport is to set out details later.
The support covers chargers typically found on residential streets, where you can leave the car for several hours or overnight. These make up around a third of the current charging network. The review points to the third of drivers without a driveway, who are currently much less likely to own an EV.
One thing isn't changing. HMRC's Revenue and Customs Brief 13 (2026) confirms that public and workplace charging stays at the standard 20% VAT rate, under legislation taking effect on 1 November 2026. It puts HMRC's long-standing policy into law rather than setting a new rate. Charging at home, as part of your household electricity, may still qualify for VAT relief.
What It Means For Your Car Insurance
Not directly. The review, the £100 million plan and the HMRC brief deal with charging prices and tax, and they don't set out any change to car insurance.
So don't assume they change your cover or your price either way. If you have a question about what your insurer needs to know, ask your insurer directly.
If you're weighing up the running costs of switching, here's what to check with electric car insurance before you quote.
What To Do Now
- Note the dates. The price support starts from spring 2027, and tariff porting is still being explored.
- Know what you pay now. The review's analysis suggests drivers who rely on public chargers, at a mix of powers, pay 17p to 20p per mile at current prices.
- Look at cross-pavement charging. As of 21 October, you no longer need planning permission to install a cross-pavement charger, which runs under the pavement from your home to your car. The government says this saves up to £300 on installation.
- Ask your insurer. If you have questions about your cover, ask them directly.
You can compare electric car insurance quotes when you're ready.
FAQs
How Much Could Public EV Charging Costs Fall?
It depends on what's delivered. Taken together, the review says its measures could be designed to cut local public charging costs by around 15 to 20p/kWh, and public charging more generally by up to 10p/kWh. These are recommendations only.
Can I Use My Home Energy Tariff At A Public Charger?
Not yet. The government plans to launch a "tariff porting" taskforce, led by industry experts, to explore letting drivers use their cheaper home tariff at certain public chargers. The Department for Transport is to set out more details in due course.
Is There VAT On Public EV Charging?
Yes, at the standard 20% rate. HMRC's Revenue and Customs Brief 13 (2026) confirms public and workplace charging isn't domestic use, under legislation taking effect on 1 November 2026. Charging at home as part of your household electricity may still qualify for VAT relief.
