Published 27 April 2026 · Last updated 8 November 2026
What changed on the Motability Scheme, and when (dates checked 8 November 2026)
| Date | What changed |
|---|---|
| 26 November 2025 | The Autumn Budget ended the scheme’s VAT and Insurance Premium Tax reliefs for new leases from 1 July 2026. Premium brands, including BMW and Mercedes-Benz, left the scheme that week. |
| 13 April 2026 | Drive Smart, Motability’s telematics app and black box, became compulsory for first-time customers and drivers under 30. |
| 14 May 2026 | Motability paused Drive Smart. It is no longer part of new leases, and fitted devices were switched off from 22 May. |
| 1 July 2026 | For new orders, 20% VAT went on Advance Payments and 12% Insurance Premium Tax on the insurance. The three-year mileage allowance fell from 60,000 to 30,000 miles, and excess mileage rose from 5p to 25p a mile. |
| 1 September 2026 | The new mileage allowance and excess charge started for customers whose allowance is paid by Social Security Scotland. |
| 28 October 2026 | The Chancellor’s Autumn Budget speech mentioned the scheme in one line, “We’re reforming Motability”, and set out no further change to it. |
Leases ordered before 1 July 2026 keep their original terms until the next vehicle. Scooter and powered wheelchair leases did not change.
What Is the Motability Scheme?
The Motability Scheme is a UK programme that allows eligible disabled people to lease a new car, wheelchair accessible vehicle (WAV), mobility scooter, or powered wheelchair using their qualifying mobility benefit. Instead of receiving the mobility component of your benefit as cash, you exchange it for a lease that typically covers the vehicle, insurance, breakdown cover, servicing, maintenance, and tyres.
The scheme is operated by Motability Operations, a company overseen by the Motability charity. It has been running since 1978 and currently supports over 815,000 customers across the UK.
Scooter or powered wheelchair? Check lease against buying.
Across the 151 scooter listings on Motability’s own search in October 2026, the typical weekly cost ran from £23.54 for a car-boot scooter to £35.95 for a road scooter. At those prices the lease costs the same as buying outright after about 51 weeks for a pavement scooter and about 75 weeks for a road scooter, though the lease includes insurance, breakdown cover and repairs.
Our Motability scooter guide has the full price list and the lease-or-buy comparison. If buying suits you better, our best mobility scooters and best folding scooters guides compare current models against their makers’ own specifications.
How Does It Work?
When you join the Motability Scheme, your qualifying mobility allowance is paid directly to Motability Operations to cover the cost of your lease. For many vehicles, this payment alone covers everything. For more popular or higher-specification models, you may need to pay an Advance Payment, which is a one-off upfront cost.
A standard car lease runs for three years, while powered wheelchairs and scooters are leased for five years. At the end of the lease, you return the vehicle and can choose a new one if you still qualify.
What Is Included in the Lease?
- A brand new vehicle of your choice from the available range
- Comprehensive insurance for up to three named drivers
- Full servicing, maintenance, and repairs
- Replacement tyres (including winter tyres where applicable)
- RAC breakdown assistance
- Windscreen repair and replacement
- Annual road tax
- A mileage allowance of 30,000 miles over three years for orders placed from 1 July 2026 (earlier orders kept 60,000 miles)
Scooters and powered wheelchairs are on the scheme too. Our Motability scooter guide lists what each type costs a week on the current price list and compares the lease with buying outright.
Who Is Eligible?
To join the Motability Scheme, you must receive one of the following qualifying mobility benefits and have at least 12 months remaining on your award:
- Enhanced Rate Mobility Component of Personal Independence Payment (PIP)
- Higher Rate Mobility Component of Disability Living Allowance (DLA)
- Enhanced Rate Mobility Component of Adult Disability Payment (ADP) (Scotland)
- War Pensioners’ Mobility Supplement (WPMS)
- Armed Forces Independence Payment (AFIP)
You cannot join the scheme if you only receive the standard rate mobility component of PIP, the lower rate mobility component of DLA, or benefits such as Attendance Allowance, Carer’s Allowance, or Employment and Support Allowance.
What Changed from 1 July 2026
The scheme changed on 1 July 2026 for vehicles ordered on or after that date. The tax changes came from the government’s November 2025 Budget, which ended the scheme’s VAT and Insurance Premium Tax reliefs. The mileage, tyre and breakdown changes came from Motability, which said it had to change the lease package after the tax rules changed. Anyone who ordered before 1 July keeps their original terms until they choose their next vehicle.
Tax changes
Advance Payments on new leases carry VAT at 20%, and so do excess mileage charges and early termination fees. No VAT is added to the part of the lease paid from your mobility allowance. The insurance included in the lease carries Insurance Premium Tax at the standard 12% rate.
Vehicles designed for, or substantially and permanently adapted for, a person who usually uses a wheelchair or travels on a stretcher kept both reliefs. Motability shows these prices at 0% VAT, and the relief depends on a Customer Eligibility Declaration saying who the vehicle is for.
Mileage allowance and excess mileage
A three-year car lease ordered from 1 July 2026 includes 30,000 miles, half the 60,000 that earlier leases came with. A five-year wheelchair accessible vehicle lease includes 50,000 miles. Each mile over the allowance costs 25p including VAT, or 21p where the lease has VAT relief. On older leases it was 5p. Customers whose allowance is paid by Social Security Scotland moved to the new mileage terms on 1 September 2026.
Tyres and driving abroad
A three-year lease covers up to six replacement tyres, no more than four of them for accidental damage. A five-year lease covers up to ten, six for accidental damage. You can still take the vehicle to the EU, but you now ask the RAC for a VE103 form and pay an administration fee.
Telematics (Drive Smart)
On 13 April 2026 Motability made its Drive Smart app and black box compulsory for first-time customers and for drivers under 30. After complaints from customers it paused Drive Smart on 14 May 2026, and it is no longer part of new leases. Devices already fitted were switched off from 22 May unless the customer asked to keep using it.
Vehicle range
Premium brands, including BMW and Mercedes-Benz, came off the scheme in the week of the November 2025 Budget. Motability said it would keep around 40 to 50 vehicles available with no Advance Payment.
Since July
The Autumn Budget on 28 October 2026 brought nothing new for the scheme. The Chancellor’s speech mentioned it once, in the line “We’re reforming Motability”.
How to Apply
Applying to the Motability Scheme is straightforward:
- Check your eligibility by confirming you receive a qualifying mobility benefit with at least 12 months remaining
- Visit a Motability dealer near you. You can find your nearest dealer on the Motability website
- Choose your vehicle from the available range, considering any Advance Payment
- Complete the application at the dealership with the help of a Motability specialist
- Receive your vehicle, typically within a few weeks
Alternatives to the Motability Scheme
If you are not eligible for the Motability Scheme or prefer to keep your mobility allowance, there are alternatives worth considering:
- Buying a used adapted vehicle privately or through specialist dealers
- Applying for a grant from charities such as the Family Fund or Motability’s own Charitable Grants programme
- Hire Purchase or PCP finance on a new or used vehicle with adaptations fitted separately
- The Access to Work scheme if you need a vehicle specifically for commuting to work
Frequently Asked Questions
Can someone else drive my Motability car?
Yes. You can name up to three drivers on your Motability insurance policy. The named drivers do not need to live at the same address as you, but you must be the main user of the vehicle.
What happens if my benefit is reassessed?
If your benefit is reduced or stopped, Motability Operations will contact you to discuss your options. There is typically a transition period, and the Motability Charitable Trust may be able to help with a grant towards alternative transport.
Can I get adaptations fitted to my Motability car?
Yes. Many adaptations can be fitted at no extra cost through the scheme, including hand controls, steering aids, wheelchair hoists, and transfer plates. More complex adaptations may require a contribution.
Sources & Useful Resources
Official Resources
- Motability Scheme Official Website – search cars, check advance payments, and apply
- GOV.UK: PIP Rates and Mobility Component – the qualifying benefit for Motability
- GOV.UK: Motability Scheme Guide
- Motability: mileage changes from 1 July 2026
- GOV.UK: Motability Scheme, reforming tax reliefs
- Motability Foundation: changes to the scheme from 1 July 2026
Charity & Advisory Resources
- Motability Foundation – grants, eligibility, and support
- Citizens Advice: Getting a Motability Car
Published 27 April 2026 · Last updated 8 November 2026
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