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I came across this in Disability Rights news, published on 8th December:
In the November 2025 Budget, the Chancellor announced that there would be changes to the Motability Scheme, in particular removing the VAT exemption for advanced payments for certain vehicles. This has caused concern for Motability users.
The Motability Scheme enables Disabled people, who receive the higher rate mobility component of Personal Independence Payment (PIP), to use the mobility component of PIP, to lease a vehicle so they can get around safely and independently.860,000 PIP recipients currently have a Motability vehicle and it is important that they understand how the Scheme is going to change and whether the change will affect them, the Motability Foundation has put together the following Questions & Answers, to clarify the changes to the Scheme.
Question: What changes to the Motability Scheme were announced at the Autumn Budget?
Answer: At the Autumn Budget, the Government confirmed that Value Added Tax (VAT) will apply to Advance Payments and Insurance Premium Tax (IPT) will apply to Scheme leases. These changes will take effect from July 2026. The Government have confirmed that VAT will not be added to wheelchair accessible vehicles.These tax changes will mean the overall cost of providing the Scheme will become more expensive but will remain sustainable with a choice of affordable vehicles for those who use it. The Motability Scheme will seek to make changes to the leasing package so that these additional costs can be absorbed where possible.
Question: How will these tax changes affect lease costs for disabled people?
Answer: The average Advance Payment is expected to rise by around £400 across a three-year lease. The Scheme will continue to offer 40–50 vehicles with no Advance Payment, meaning there will be no up-front costs to pay in addition to weekly leasing costs.Has the Budget changed eligibility for the Motability Scheme?
Answer: No, eligibility for the Motability Scheme has not changed. Eligibility will continue to be determined by Government, and there are no confirmed changes to this at this time.Question: Are current customers affected?
Answer: Current leases will not be affected by any changes. If someone chooses to lease another vehicle at the end of their current lease, then they would be affected by any changes.Question: Will the Scheme remain affordable for disabled people?
Answer: Yes. Motability Foundation and Motability Operations will work to ensure that the Scheme remains as affordable as possible, including:Offer around 40–50 vehicles with no Advance Payment
Maintaining availability of a wide range of suitable and good-value vehicles
Providing subsidies and grants for WAVs and essential adaptations
Question: Will lease payments exceed qualifying benefit allowance amounts, such as the PIP higher rate mobility component, following these changes?
Answer: The Scheme is designed so that many customers can meet their weekly lease costs using their mobility allowance alone.Motability Operations and the Motability Foundation are committed to maintaining this principle. The continued availability of 40–50 vehicles with no Advance Payment means customers choosing these vehicles will not be required to pay additional upfront or ongoing costs beyond their weekly mobility allowance.
Should customers choose to lease vehicles that cost more than the sum of their allowance over the life of the agreement, they pay an Advance Payment. Advance Payments will increase as a result of the extra tax imposed on the Scheme, however, the weekly leasing cost will continue to be the weekly higher rate mobility allowance. As the Scheme evolves and we fully understand the impacts changes may have on disabled people, the Motability Foundation will also need to consider how its grant programmes best support those most in need.
Motability Foundation will continue to provide grants to support people with the most profound needs to access the Scheme.
Question: How will the Motability Scheme continue to support customers?
Answer: While some change is necessary to ensure future longevity, the Motability Scheme remains committed to its core purpose – providing mobility to disabled people, many of whom have no choice but to use private transport because of inaccessible public transport and infrastructure across the UK. The Motability Scheme commits to:No changes for customers in current leases. Changes to the Scheme would relate to new leases.
Continuing to provide a range of around 40 to 50 vehicles available to lease with no Advance Payment
Motability Foundation and Motability Operations will continue to subsidise and provide grant funding for the ongoing provision of Wheelchair Accessible Vehicles, while also funding adaptations to support over 82,000 customers with essential mobility solutions.
Motability Foundation will continue to provide grants to support people with the most profound needs to access the Scheme, having awarded £59.3 million in 2024/25 to help over 10,000 customers benefit from essential mobility solutions.Question: Will the cost of new leases for vehicles with no Advance Payment increase? If so, by how much?
Answer: Offering vehicles with no Advance Payment will remain an ongoing commitment of the Scheme, with 40–50 such vehicles available even after the tax changes.Therefore, while the lease cost of a vehicle itself may increase as a result of tax changes, customers will still be able to cover the weekly lease cost using their mobility allowance, as they do today.
Question: Will the cost of new leases for vehicles substantially and permanently adapted for wheelchair or stretcher users increase, and if so, by how much?
Answer: The Budget confirmed that tax changes will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users. In addition to this, the Motability Foundation remain committed to:Continuing to subsidise and grant-fund wheelchair accessible vehicles
Supporting the cost of adaptations
Keeping these vehicles as affordable as possible
Question: What changes have been made to premium brand vehicles?
Answer: Premium brand vehicles were removed from the Scheme by Motability Operations on 24 November 2025. The Scheme will focus on providing vehicles that:meet disabled people’s needs • represent value and purposesupport long-term affordability
New vehicle models are reviewed by the Motability Foundation’s independent Scheme Oversight Committee.An overview of the full, up-to-date range of vehicles available on the Scheme can be found here.
Question: What other changes are being considered to manage costs?
Answer: To minimise price rises caused by new taxes, Motability is considering adjustments to:mileage allowances
overseas breakdown cover
telematics use for insurance purposes
other included services
Proposed changes to the leasing package will undergo disability impact assessment by the Motability Foundation before any changes are approved, announced and implemented.Question: When will detailed changes be communicated to customers?
Answer: Motability Operations, which runs the Scheme, will begin engaging with customers about the proposed changes in spring 2026. Proposed changes to the leasing package will undergo disability impact assessment by the Motability Foundation, which oversees the Scheme, before any changes are approved, announced and implemented.Question: Where can Scheme customers find additional communications on Scheme changes?
Answer: Further detail of changes relevant for Motability Scheme customers can be found here – Your questions answered about the Motability Scheme changes.https://www.disabilityrightsuk.org/news/motability-answers-concerns-over-governments-plans-scheme
Here is a report from Citizens Advice on How planned cuts to disability benefits will impact the people we support. You can download a copy of the report from here. https://www.citizensadvice.org.uk/policy/publications/pathways-to-poverty-how-planned-cuts-to-disability-benefits-will-impact-the/
Published: 28 May 2025
Citizens Advice (CA) have condemned the government’s Pathways To Work Green Paper in a hard hitting report of their own, entitled ‘Pathways To Poverty’.The opening paragraph gives a clear indication of the anger and frustration inside an organisation whose workload is likely to be massively increased by the effects of the planned reforms:
“By refusing to properly consult on its plan to cut billions from disability benefits, the government is choosing not to ask questions it doesn’t want the answers to. The cuts will have a devastating impact on disabled people (and their children), sending hundreds of thousands into poverty, and many more into deeper poverty. This will result from a series of arbitrary reforms that have been designed around savings targets rather than improving outcomes, inflicting hardship on people in ways that the government doesn’t yet fully understand.”
The 44 page report is carefully researched and referenced and draws together information from other reports, some of the many Freedom of Information Act requests that have been published and the experiences of its own advisers and clients.
One of the things it argues is that the impacts of the proposals are likely to be worse than the government suggests, because:
The government used a dubious sleight of hand to reduce the number of people likely to be pushed into poverty. It counted people who would have been affected by the Tory WCA changes which never happened as having been lifted from poverty they were never actually put in. So, rather than 250,000 being pushed into relative poverty by Labour, CA thinks it could be as many as 400,000.
The Green Paper doesn’t attempt to work out how many people will lose both PIP and the UC health element as a result of the changes, or how much they will lose.
The government document doesn’t analyse how many people already in poverty will be more deeply entrenched in poverty as a result of the cuts, although an FoI request has suggested this will be 700,000 people.
Pathways To Poverty goes through the effects of restricting PIP eligibility, cutting the UC health element and making PIP daily living the gateway to UC health.It argues that the cuts could push people further from work, rather than helping them into employment.
It concludes by saying:
The government must reconsider its current approach. We are calling on the government to cancel proposed cuts to disability benefits. More immediately, we’re asking the government to:
Reverse the decision not to consult on cuts to disability benefits.
Delay parliamentary votes on disability benefit cuts until all relevant impact assessments have been published. This should include the impact on other public services and the voluntary sector, and estimated employment outcomes from measures proposed in the green paper.
The report is a must read for anyone campaigning on this issue and should be compulsory reading for any MP voting on it – though sadly they are the least likely group to ever open its pages.Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.A title put a claim in for my 16 year old son who is ASD and has mental health issues too.
Anyway enhanced daily living with 4 points in 1 section and 10 points in planning a tourney for mobility.
2 points from enhanced and Motability plus driving at 16. I’m so thrilled that I can’t be disappointed over that 2 points, that imho he could’ve been awarded easily but equally I can see their point too.
The phone assessment was extremely fair even tho it took 2 hours with my wife my son lasted 15 minutes before leaving. They weren’t awkward didn’t lie, didn’t bully all I can say about the hole thing was it on the face of it seemed fair and reasonable. I did take 3 weeks filling the form in and fully loaded every text box typed up.
So thrilled even if very slightly disappointed over the 2 points. We’ll wait until review in 2028 to try again if he’s as bad or worse by then.
I hope this is a sign that the dwp is trying to do better
Open consultation Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper
Published 18 March 2025The Link below is for the published government”Green Paper” which is a “consultation document” It makes interesting reading. The Term “Consultation”is used very misleading to say the least. Read on…
What are the main changes in the Green Paper?
Personal independence payment
From November 2026, claimants will need to score at least 4 points from a single daily living activity to qualify for the daily living component of PIP, as well as scoring a total of at least 8 points.So, if you are assessed as meeting 4 descriptors scoring two points each, that will be 8 points, but it will not qualify for an award of the standard rate of the daily living component of PIP.
But if you select one descriptor scoring 4 points and two descriptors scoring 2 points each, that will be 8 points and you will qualify for an award.
In the same way, six two point descriptors will currently qualify for the enhanced rate of PIP daily living, but under the new scoring system it will not qualify for any award of the daily living component
The changes will apply both to new claimants and to existing claimants when their award is reviewed from November 2026 onwards.
The mobility component will not be affected.
These changes are not being consulted on.
The DWP is consulting on how to support existing PIP claimants who lose their entitlement on review from November 2026. The possibility of transitional protection is mentioned briefly in the Green Paper as well as ways to ensure that claimants who lose their PIP daily living component have their health and care needs met.
Assessments
There will be a greater proportion of face-to-face assessments for PIP, UC and ESA.Reassessments for UC and ESA will be restarted prior to abolishing the WCA (see WCA above).
People with the most severe disabilities or with health conditions that will never improve will never be reassessed.
Assessments will be recorded by default.
There will be a review of the PIP assessment “involving experts, stakeholders and disabled people to consider how it needs to adapt for the future.”
How long will the changes take?
The consultation ends on 30 June 2025.However, because the DWP has chosen not to consult on most of the major issues, including the changes to PIP scoring and the freezing of the health element of UC, it does not have to wait until the consultation ends before bringing forward new legislation for these changes. The DWP have said they want to introduce legislation in this session of parliament, which ends on 21 July.
So it is possible legislation to enact some of the changes, especially to PIP scoring, could be introduced as early as May to try to prevent opposition to the cuts building.
The change to PIP scoring would still not take effect until November 2026, but the law enabling it could be firmly in place very much sooner.
For the limited range of proposals which are being consulted on, a White Paper will be published later this year with legislation to follow. In addition, details of the scrapping of the WCA and the use of the PIP assessment to assess entitlement for the UC health element will be set out in the White Paper, although they will not have been consulted on.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.