Ministers have moved to reassure disabled drivers following significant changes to the Motability car scheme, which have sparked fears over reduced choice for wheelchair users.
Premium Brands Removed from Essential Scheme
The government confirmed last month that premium marques, including BMW, Mercedes-Benz, Audi, Lexus, and Alfa Romeo, would be stripped from the Motability leasing programme. All coupes and convertibles were also eliminated. The stated aim is to refocus the scheme on essential, practical vehicles and ensure efficient use of taxpayers' money.
Adding to the financial pressure on users, the Department for Work and Pensions (DWP) has set July 2026 as the date when VAT will be applied to Advance Payments. Insurance Premium Tax will also be levied on scheme leases following Budget changes. Motability estimates this will increase the typical upfront cost of a vehicle by around £400 over a standard three-year lease.
Ministerial Assurance for Wheelchair Users
Labour's Neil Duncan-Jordan directly challenged the government in Parliament, questioning whether the removal of luxury vehicles would result in a "reduction of choice for wheelchair accessible users."
In response, Sir Stephen Timms, the Minister of State for the DWP, provided a key assurance. He stated that the upcoming tax changes will not significantly affect vehicles 'substantially adapted for wheelchair users'. He also confirmed that existing leases would be protected from the new tax impacts.
"The Motability Scheme is a lifeline for many disabled people and families, supporting their independence," Sir Stephen said. "We are... ensuring it supports disabled people whilst delivering efficient use of taxpayers' money."
Grants and a Push for British Manufacturing
The minister highlighted that means-tested grants remain available for those who need extra financial help. The Motability Foundation provided £59.3 million in grants in the 2024/25 financial year, supporting over 10,000 customers with essential costs or complex adaptations.
Separately, the government revealed ambitions to increase British manufacturing within the scheme. Labour's Jim McMahon pressed for details on prioritising UK-made vehicles.
Sir Stephen responded that Motability Operations, the commercial company running the scheme, plans to support the government's industrial strategy. The goal is for 25% of the scheme's vehicles to be British-made by 2030, with an ambition to reach 50% by 2035.
To qualify for the Motability scheme, individuals must receive a higher-rate mobility allowance, such as the Enhanced PIP Mobility Component or Higher Rate DLA Mobility, with at least 12 months remaining on their award.
