Major changes to the vehicle leasing scheme used by disabled people in Scotland start today, September 1, after Motability reached an agreement with the Scottish Government that includes extra mileage support for rural and island communities and people making essential journeys.
Around 80,000 people in Scotland use the Accessible Vehicles and Equipment Scheme (AVES), run by Motability under a separate agreement with the Scottish Government. The updated lease terms apply to customers who receive a qualifying disability benefit from Social Security Scotland and place a new order or renew their lease from September 1. Existing customers, and anyone who placed a new order before Tuesday, September 1, keep their current lease terms.
What changes for new and renewing customers
From September 1, new and renewing Motability Scheme customers in Scotland will see a mileage allowance of 30,000 miles over a three-year lease, or 50,000 miles over a five-year Wheelchair Accessible Vehicle (WAV) lease. There is a 25p excess mileage charge, including VAT, for mileage above the agreed allowance.
Customers can have up to six tyre replacements during a three-year lease, including up to four replacements for accidental damage. Those with a five-year WAV lease can replace up to 10 tyres, including up to six for damage. A £22 VE103 administration fee applies for customers taking their Motability vehicle to European Union countries. VAT and Insurance Premium Tax (IPT), introduced on most new leases from July 1, will also apply to customers in Scotland.
Extra support for rural and island communities
The changes were introduced for new Motability Scheme orders in England, Wales and Northern Ireland in July in response to higher tax costs announced by the UK Government in last year’s Autumn Budget. However, Scotland’s AVES operates under a separate agreement with the Scottish Government, so the changes were delayed while discussions took place.
As part of those talks, the Scottish Government secured additional mileage support for customers living in rural and island communities, as well as those who need to travel further for essential journeys such as medical appointments, specialist education and work. People who need to use more than 3,000 miles of their annual mileage allowance for essential journeys relating to healthcare, specialist education or employment may qualify for additional mileage support.
Motability has also introduced a postcode-based exception for customers living in the most rural and island communities. Eligible customers will be identified automatically and contacted directly if the additional support applies to their lease.
All-inclusive package unchanged
Despite the changes, Motability said its all-inclusive lease package will remain the same. Customers will continue to receive insurance for up to three named drivers, servicing and maintenance, breakdown cover and dedicated customer support.
Andrew Miller, chief executive of Motability Operations, said: "The changes we are making in response to new UK Government tax costs will help keep the Motability Scheme sustainable, so we can continue to support disabled people's independence for the long term."
Social Justice Secretary Shirley-Anne Somerville said: "The UK Government imposed a punitive tax change on the Motability Scheme and we understand this has been a concerning time for disabled people." She added: "Importantly, this support will benefit disabled people right across the UK, not just in Scotland, and we are grateful to Motability for their cooperation."
Customers who are unsure how the changes affect them can contact Motability directly for more information. Full details of the changes can also be found on the website.
