- Home charging significantly reduces EV ownership costs, while public charging can be more expensive than petrol, according to Electric Vehicles UK.
- Used EVs are now cheaper than petrol cars, and salary sacrifice schemes can save new EV buyers thousands.
- Lowering VAT and improving charging infrastructure would make EV ownership more affordable and accessible.
Electric Vehicles UK releases 2025 Cost of Driving Electric report to determine exactly how much emobility can save
EVs are becoming more popular in the UK, being the only car type with a production increase so far this year. In 2025, experts predict 500,000 new EVs and 250,000 used ones will be sold. More people are considering making the switch, but a key question remains: Are EVs actually cheaper to own than petrol cars?
Dan Caesar, CEO of EVUK, commented:
“It is our mission to present the whole picture and not just present a partial, or even partisan, picture of the realities of driving electric. EVUK was launched to bring the EV industry together and better educate mainstream drivers on the benefits, and perceived drawbacks of battery EVs. The Cost of Driving Electric is the first of many initiatives that Electric Vehicles UK will deliver for motorists and its members.”
Home charging vs public charging
For most EV owners—about 90% who charge at home—the answer is clear. Charging at home is much cheaper than using public chargers. These drivers can save thousands over five years because home electricity rates are much lower than public charging costs.
However, for the 10% who rely on public chargers, the financial benefits are less certain. In fact, nearly half of these drivers could end up spending more on charging than they would on petrol. Rapid chargers, often found at motorway service stations, are expensive, sometimes even costing more per mile than petrol.
Affordable EVs on the used car market
Used EVs are becoming more affordable, making them a smart choice for buyers. Currently, 80% of used EVs cost less upfront than comparable petrol cars. Over five years, most used EV owners save money, especially if they charge at home. However, high-mileage drivers who rely on public charging won’t see as many savings. The used EV market has become so popular that Auto Trader has leapt on the initiative and launched its own EV-specific service.
The rise of salary sacrifice
For the most part, new EVs remain expensive, however, plenty of outliers have appeared in the budget market of late. But, salary sacrifice schemes make all EV models far more affordable. These schemes allow employees to pay for an EV before tax and National Insurance are deducted, lowering overall costs.
For a higher-rate taxpayer, this can mean saving over £6,000 in four years. Even basic-rate taxpayers save more than £2,000. With lower running costs, tax benefits, and reduced maintenance expenses, leasing an EV through salary sacrifice is one of the best financial options available today.
The problem with public charging
Despite the benefits of EV ownership, the high cost of public charging remains a major issue. Many EV owners feel frustrated by the 20% VAT on public charging, compared to just 5% VAT for home charging. This makes it far more expensive for those without driveways or home chargers.
Are EVs cheaper?
For most people, yes—EVs are the cheaper choice. Home charging is key to maximising savings, and salary sacrifice makes new EVs a great deal. However, for those relying on public charging, costs can be unpredictable and sometimes higher than petrol.
EVUK recommends these initial steps to help accelerate adoption:
- Reduce VAT on public charging from 20% to 5% to make prices fairer.
- Restore grants for home chargers, making it easier for renters and those in flats to install them.
- Improve infrastructure so more people have access to reliable, affordable charging options.
If the UK wants to see widespread EV adoption, charging costs need to be fair for everyone. Lowering VAT on public charging and improving access to home charging will ensure that EVs remain the best financial and environmental choice for all drivers.
