Government Review of EV Charging Costs Could Save Drivers £650 Annually
Govt Review of EV Charging Costs Could Save Drivers £650

The government is set to review public charging costs for electric vehicles (EVs), in a major boost for electric car users. The Cost of Charging Review, a UK government initiative, will examine why public EV charging prices have risen and explore what government, industry, and consumers can do to make charging more affordable.

Review Details and Timeline

The Labour Party Government committed to reviewing the cost of public EV charging in last year’s Budget, with findings expected to be reported in autumn 2026. The Office for Zero Emission Vehicles (OZEV) states that the review will consider the impact of energy prices, wider cost contributors, and options that government and industry can take to lower costs for EV drivers.

Industry Analysis and Price Increases

Industry analysis by ChargeUK, published in September 2025, estimated that average charging prices have increased by 38% since 2021. The review promises to examine current costs of public charging, how these have changed in recent years, and the drivers for these changes. Reports indicate that using a public chargepoint costs EV drivers around £650 a year, though some estimates suggest the sum could be in the four figures.

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The RAC notes that charging an EV to 80% at a public rapid charger is substantially more expensive, particularly with the fastest rapid chargers. For EVs with the largest batteries, a 10-80% charge could cost over £60.

Scope and Limitations

Domestic charging costs are out of scope for this review. Matt Adams, head of electrical transport systems at Beama, the UK trade association for the electrotechnical and energy infrastructure sector, says it is “difficult” to see how a review focused on public charging costs can deliver its full potential when it has already ruled out making recommendations on tax policy.

“Aligning VAT rates between public and domestic charging has long been one of the most widely discussed options for reducing charging costs,” he said. “By ruling out tax policy recommendations from the outset, Government risks missing an important opportunity to address one of the most persistent cost barriers facing EV drivers.”

Industry Reactions

Guy Bartlett, Believ CEO, said: “Believ welcomes the Government’s launch of the Cost of Charging Review, as committed to after last year’s Autumn Budget. We’re encouraged to hear Philip New will chair the work – his energy expertise will be a real asset in turning this into practical, evidence-led reform.

“This is a critical opportunity to tackle one of the biggest barriers to EV adoption – affordability. While it already costs less to run an EV than a petrol or diesel vehicle, more cost benefits are essential to help drivers invest in a new vehicle.

“Today, drivers who can charge on a driveway typically benefit from 5% VAT, while those without off-street parking pay 20% on the public network, an inequity that risks slowing EV adoption. The review should also address standing charges, which weigh heavily on a pre-profit EV charging sector, and penalise it for building infrastructure ahead of demand; reform here would reduce costs for drivers and help keep the UK charging market investible.”

Public charging is a critical enabler of the EV transition, yet charge point operators have had comparatively little relief from wider energy cost pressures, so this review is an important step.

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