The British government has unveiled a £100 million initiative to reduce the cost of charging electric vehicles at public charging points near residential areas, with drivers expected to save
an average of £150 a year.
Announced as part of Budget 2026 on 28 October, the scheme is intended to make electric vehicles more affordable, particularly for motorists who cannot charge their cars at home because they lack a driveway or private parking space.
The funding will be made available over two years from spring 2027 and will target lower-powered public chargers commonly installed on residential streets. These charging points allow motorists to leave their vehicles connected for several hours or overnight and account for approximately one-third of the UK’s public charging network.
The government’s decision follows an independent review of public electric vehicle charging costs commissioned at Budget 2025. The review found that charging prices have risen considerably in recent years, potentially discouraging drivers from switching away from petrol and diesel vehicles.
In real terms, average prices for lower-powered public chargers have increased by 69% since 2021, while costs at higher-powered charging points, such as those found at motorway service stations and dedicated charging hubs, have risen by 94%.
The government argues that these increases disproportionately affect households without access to private parking, as they are more dependent on public infrastructure and cannot always benefit from cheaper domestic electricity tariffs.
Alongside the immediate financial support, ministers plan to explore further measures to make public charging more affordable. An industry-led taskforce will examine the possibility of introducing a system known as “tariff porting”, which could allow drivers to use their cheaper home electricity tariffs at selected public charging points. The Department for Transport is expected to provide further details at a later date.
The initiative forms part of the government’s broader strategy to accelerate the transition to electric vehicles and reduce dependence on fossil fuels. Ministers say the shift could help households save money, improve urban air quality and support economic growth while contributing to the country’s net-zero targets.
According to the government, motorists switching to electric vehicles can save up to £1,750 annually compared with driving petrol or diesel cars, although actual savings depend on factors such as mileage, vehicle choice and charging arrangements.
The government has committed £7.5 billion through to 2035 to support the transition. This includes £2 billion for the Electric Car Grant, which has helped more than 190,000 drivers purchase electric vehicles, with eligible buyers able to receive discounts of up to £3,750.
The expansion of charging infrastructure remains another priority. The UK currently has more than 124,000 public charging points, representing an annual increase of 7.4%. A further £600 million has been allocated to support the rollout, including £480 million through the Local Electric Vehicle Infrastructure fund to help local authorities and charging operators install more than 100,000 additional chargers across England.
Measures are also being introduced to make charging at home easier for people without driveways. Since 21 October, homeowners have no longer needed planning permission to install certain cross-pavement charging cables connecting their properties to vehicles parked on the street. The change is expected to reduce installation costs by up to £300 and make home charging more accessible.
Earlier this year, the government also extended and increased grants for installing charging facilities in flats, rented homes, workplaces and properties with on-street parking.
The latest funding announcement comes as ministers seek to maintain momentum in the electric vehicle market. While sales have continued to grow, the rising cost of public charging has emerged as a significant concern for drivers who cannot access cheaper electricity at home.
By directing support towards residential charging infrastructure, the government hopes to reduce the financial barriers to switching to electric vehicles and make the transition more accessible to households across Britain. Photo by [2], Wikimedia commons.
