Andy Burnham has only been Prime Minister for a week but road users are already set to feel the impact. Andy Burnham will cut domestic VAT rates from October (Image: Getty) Motorists with a driveway will be affected by a new £40 rule introduced by Andy Burnham just days into his new job as Prime Minister. Mr Burnham announced plans to slash VAT rates on domestic electricity just hours into his premiership, with fees set to be cut from 5% to 0%. However, electric car experts have warned EV owners topping-up their cars at home could be set to benefit from hefty savings under the new policy. Despite the announcement, motorists will have to wait until the Autumn to take advantage of the discounts, with the new VAT rates coming into effect on October 1. VAT cuts could benefit electric car owners who charge at home (Image: Getty) David Martell, CEO of home charger company Andersen EV, has predicted most EV owners could save around £25 per annum, with those racking up the miles likely to save up to £40. David commented: “For the average EV driver charging at home, the saving on charging alone is likely to be around £20–£25 per year. For higher-mileage drivers, it could be closer to £35–£40. “That may not sound transformational on its own, but it’s the direction of travel that matters. It demonstrates a willingness to support the transition with practical measures that make a real difference to consumers.” However, motoring experts have stressed that savings could be even higher in a massive boost to cash-strapped road users. According to Carwow, the cost of topping-up a 100kWh battery would drop from £26.11 to just £24.87 under the new system, saving road users around £1.24 per charge. The experts stressed that road users fully charging their battery at home at least once a week could be set to save around £65 per year. The news is set to be a blow to those without access to domestic electric car charging, with the difference between public and private plugs set to rise. VAT rates on electricity at public charging stations will remain at 20% in a blow to those without access to driveways. Motoring experts have repeatedly called for public charging costs to fall, with the Society of Motor Manufacturers (SMMT) previously warning that VAT rates “should be reduced to align with the 5% VAT levied on home charging”.