The Government has announced a £100 million funding package aimed at reducing the cost of charging electric vehicles at local public charging points, with ministers estimating that affected motorists could save around £150 a year.
The measure, confirmed in the Budget on 28 October 2026, will begin in spring 2027 and run over two years. It is primarily intended to help drivers who cannot charge their vehicles at home and instead rely on lower-powered public chargers, particularly those installed on residential streets.
Public charging costs have risen sharply
The announcement follows an independent government-commissioned review of public EV charging costs. According to the Treasury, average prices for lower-powered chargers have increased by 69% in real terms since 2021, while higher-powered charging prices have risen by 94%.
The Government estimates that approximately one-third of UK households lack access to off-street parking or a driveway, leaving many motorists dependent on public charging infrastructure.
Who will benefit?
The funding targets local, lower-powered public charge points, including those where vehicles can remain connected for several hours or overnight. The Treasury says these chargers account for approximately one-third of the current public charging network.
The projected £150 annual saving is a government estimate for an average driver without home charging who charges on-street. It is not a guaranteed cash payment or a fixed discount for every EV owner. Rapid chargers at motorway services are not the principal focus of this measure.
The Department for Transport is expected to provide further details of implementation. The Government has not yet published full operational rules explaining how the funding will be delivered through charging operators or reflected in consumer prices.
Taskforce to examine domestic tariffs at public chargers
Ministers have also announced an industry-led taskforce to explore tariff porting: allowing drivers to use their domestic electricity tariff at certain local public charge points. The proposal is exploratory and no start date has been confirmed.
Wider electric vehicle programme
The Treasury says the Government has committed £7.5 billion to support the EV transition through to 2035, including £2 billion through the Electric Car Grant. It reports more than 124,000 public charge points across the UK and existing funding to expand the network.
Delivery details still to come
The £100 million commitment has been announced, but the extent of the eventual price reduction will depend on the delivery arrangements and how savings are passed on to drivers. The scheme is scheduled to begin in spring 2027, rather than taking effect immediately.