Major changes to the vehicle leasing scheme used by disabled people in Scotland will take effect from September after Motability reached an agreement with the Scottish Government that includes extra mileage support for rural and island communities and people making essential journeys.
What is changing and who is affected
Around 80,000 people in Scotland use the Accessible Vehicles and Equipment Scheme (AVES), which is run by Motability under a separate agreement with the Scottish Government. The updated lease terms will 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 Motability customers, and anyone who places a new order before September 1, will keep their current lease terms.
The changes were introduced for new Motability Scheme orders in England, Wales and Northern Ireland on July 1 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. They will now apply to new orders from September 1.
Extra mileage support for rural and island communities
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.
From September 1, new and renewing Motability Scheme customers in Scotland will see the following changes: 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; a 25p excess mileage charge, including VAT, for mileage above the agreed allowance; up to six tyre replacements during a three-year lease, including up to four replacements for accidental damage; customers with a five-year WAV lease can replace up to 10 tyres, including up to six for damage; a £22 VE103 administration fee for customers taking their Motability vehicle to European Union countries.
VAT and Insurance Premium Tax apply
Motability said VAT and Insurance Premium Tax (IPT), introduced on most new leases from July 1, will also apply to customers in Scotland. The organisation has also confirmed new support for customers with higher mileage needs. 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. It said 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. Some disabled people living in isolated rural and island communities need to travel further for essential journeys. Following our discussions with the Scottish Government, we'll be providing extra support for eligible customers in these areas. We remain committed to working hard to offer good value for money, including a choice of cars that disabled people can lease entirely through their weekly mobility allowance."
Scottish Government response
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. The Scottish Government has been working hard with Motability to bring in exceptions to some of the changes the UK Government's decision led to, protecting people from large price hikes. As a result of this joint work, Motability will provide support to customers living in rural and island communities, as well as to customers who can demonstrate the need for increased mileage to allow for essential travel such as medical appointments, specialist education and employment. Importantly, this support will benefit disabled people right across the UK, not just in Scotland, and we are grateful to Motability for their cooperation. We will continue to press the UK Government to immediately reverse its decision and to follow our lead by standing up for disabled people."
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.
