Published 3 September 2026
Changes to Motability Scheme lease terms took effect for customers in Scotland on Tuesday 1 September 2026, roughly two months after the same changes landed for the rest of the UK. The changes apply only to orders placed on or after that date. Anyone already holding a lease, or who ordered before 1 September, keeps their existing terms until that lease ends.
The Scheme runs under a separate agreement in Scotland called the Accessible Vehicles and Equipment Scheme, or AVES, which is why the timing differs. Motability Operations told Scottish customers in June 2026 that the changes would be held back while it talked to the Scottish Government. In a scheme news update published on 14 July and reviewed again on 1 September, the operator confirmed those discussions had concluded and the new terms would start on 1 September. The allowances affected are Scottish Adult Disability Living Allowance, Adult Disability Payment and Child Disability Payment.
What has actually changed
On a three-year lease ordered before 1 September, customers had 60,000 miles, up to eight tyre replacements, a 5p excess mileage fee plus standard rate VAT, and no admin fee for taking the car abroad. On a three-year lease ordered on or after 1 September, that becomes 30,000 miles, up to six tyre replacements including a maximum of four for accidental damage, a 25p excess mileage fee including standard rate VAT, and a £22 VE103 admin fee to take the car into the EU.
Five-year Wheelchair Accessible Vehicle leases move from 100,000 miles to 50,000. The tyre allowance on a WAV stays at 10 replacements, but is now capped at six for damage. The 25p excess mileage fee and the £22 EU admin fee apply to WAVs too, though Motability notes the fee is quoted including standard rate VAT unless VAT relief applies. Motability describes the mileage allowance as “one of the biggest adjustments” and points customers who drive well above the standard allowance towards its support for higher mileage needs.
Why the terms were rewritten
The trigger was tax rather than the Scheme itself. VAT and Insurance Premium Tax announced in the 2025 Autumn Budget now apply to most new Motability leases. In the March 2026 announcement of the UK-wide changes, Motability Operations chief executive Andrew Miller said that if nothing were done, the average cost of a new lease would rise by around £1,100. He also confirmed what is not changing: insurance, servicing, maintenance and breakdown cover all remain part of the lease.
Whether the trade-off is a fair one is a judgement for customers to make. What is not in dispute is that the halved mileage allowance is a real reduction in what a new lease includes, and that 30,000 miles over three years leaves less headroom for people in rural Scotland, where a hospital appointment or a weekly shop can involve a long drive. Motability’s own framing acknowledges this by signposting extra-mileage support in the same update.
What to do if you are affected
If you have an existing lease, nothing changes for you now. If you are approaching a renewal, it is worth working out your actual annual mileage before you order, because the excess fee has gone up fivefold and now includes VAT. If the new mileage cap does not fit how you use the vehicle, Motability’s higher mileage support route is the first thing to ask about, and it is easier to raise before you order than after.
It is also worth remembering that a Motability car is not the only route to getting out and about. Powered wheelchairs and mobility scooters are available through the Scheme in their own right, and for shorter local journeys a scooter bought outright can work out cheaper than stretching a car lease. Our guides to mobility scooters and wheelchairs cover what to look for, and our wheelchair costs guide sets out realistic price ranges before you speak to anyone.
Full details of the changes are on Motability’s Scheme changes page, and the Scotland-specific update is published in full on the Motability scheme news site.
Related guides on Review Mobility
- Mobility scooters: buying advice and reviews
- Wheelchairs: types, fitting and what to buy
- How much does a wheelchair cost?
- Mobility aids explained
- Find a mobility company near you
Published 3 September 2026