Motability Scheme Update: Changes to Rules and Requirements

The Motability Scheme rules are changing, which might make it harder for people to use. Experts think some people do not understand how the scheme works and are missing out on help they could get.
The Motability Scheme allows people to use part of their benefits to lease a car or other vehicle. People on PIP may be able to use the scheme.
From July 1, 2026, VAT and insurance tax will apply to most new leases. There will also be limits on how many miles you can drive.
If you drive more miles than the limit, you will have to pay 25p per mile. A car comparison site is worried that these changes will make the scheme harder to use.
A survey found that 68 percent of eligible drivers are not using the scheme. The people surveyed said the costs were a big reason they did not apply.
A consumer writer said that people often think the Motability Scheme is a 'free car' scheme, but it is not. Only 59 percent of disabled drivers are eligible, and only a third of those have a car through the scheme.
A disabled driver is worried about the changes and the extra costs. She needs a large car for her mobility scooter and hoist, but there are few options without high upfront costs.
Many people are struggling to get the support they need through Motability due to rising costs and limited choice.
There is a misunderstanding about the scheme, and it is not just about giving disabled people 'free cars'. The changes to Motability might make things worse for some drivers.
The gap between what disabled drivers need and what the system provides is getting wider, especially with increasing costs and the shift to electric vehicles.
The Motability Scheme is still one of the most affordable ways for disabled people to get a vehicle. It gives people the freedom and independence to get to work, school, and medical appointments.
The scheme offers a range of vehicles, including options with no advance payment and vehicles designed for complex mobility needs. The UK government announced new taxes for the Motability Scheme, which will increase lease prices.
The Motability Scheme recognizes that any increase in costs could affect disabled people's independence. They considered changes to the leasing package to minimize price increases for customers.
You might be able to apply for the Motability Scheme if you claim certain benefits.