Major changes to the Motability Scheme rules and requirements risk making the much underused scheme harder to access, it is being warned. Motoring experts have warned there are some misunderstandings of how the scheme works and that some people are missing out on support they could claim.
How the Motability Scheme Works
The Motability Scheme allows people who claim a mobility element of certain benefits to use this part of their payments to lease a car, or a wheelchair accessible vehicle, scooter or powered wheelchair. People on the enhanced mobility part of PIP (Personal Independence Payment) may qualify.
Key Changes from July 2026
Under key changes coming in from July 1, 2026, VAT and insurance premium tax will apply to the majority of new leases. New mileage allowances are also being brought in for new leases, with a limit of 30,000 miles for a three-year lease and 50,000 miles for five-year leases. State Pensioners to face major tax change. You will have to pay 25p per mile for any driving above these limits.
Car price comparison site Carwow has raised concerns that the new restrictions and costs could make the scheme harder to access. The group surveyed more than 500 disabled people and found that 68 percent of drivers eligible for the scheme were not using it. Those surveyed said the costs involved was a major disincentive from applying.
Major Barriers Identified
Siobhan Doyle, consumer writer at Carwow, said: "Motability is often viewed as a 'free car' scheme, with a wide choice of vehicles, but the reality is very different. Only 59 per cent of the disabled drivers we surveyed were eligible for the scheme in the first place, and of those, just a third have a car through the scheme, which is just 19 percent overall, with most citing significant upfront costs and limited choice as major barriers."
Disabled driver Tracy shared her thoughts on the changes and the extra costs being added to the scheme. She said: "I am extremely worried as I need a large car with an even larger boot for my mobility scooter and hoist, which means there are few to choose from without huge upfront costs."
Ms Doyle said many people are struggling to get the support they need through Motability given the rising costs as well as "limited choice and poor accessibility".
Persistent Misunderstandings
She said: "There's also a persistent misunderstanding around the scheme. The perception that disabled people are handed 'free cars' simply isn't accurate, and it masks the real financial and practical challenges many face. With changes to Motability on the horizon, there's a real risk these issues will deepen, leaving some drivers with fewer options and reduced independence."
"More broadly, this points to a widening gap between what disabled drivers need and what the current system delivers, particularly as costs increase and the shift to electric vehicles creates new accessibility hurdles. Without greater focus from policymakers and manufacturers on affordability, vehicle design and infrastructure, there's a danger that access to mobility - and the independence it enables - will become even more limited."
A spokesperson for the Motability Scheme said: "The Motability Scheme remains one of the most affordable and accessible ways for disabled people to get a vehicle, particularly for those who would otherwise struggle to access finance, insurance and maintenance in the open market. The scheme is a lifeline, giving people the freedom and independence to get to work, school and medical appointments, and that remains unchanged."
"We continue to offer a wide range of vehicles, including options with no advance payment and vehicles designed to meet more complex mobility needs, such as wheelchair accessible and adapted vehicles. In November, the UK government announced new taxes for the Motability Scheme which would mean an average £1,100 increase to lease prices from July."
"We recognise that any increase in the cost of a lease could have a significant effect on disabled people's independence. Through our research we found that two thirds of customers (66 per cent) expected to see this cost partly offset by changes to the lease and partly paid for by customers. So, to minimise price increases for customers, we considered a range of changes across the leasing package."
Who Could Qualify for the Motability Scheme?
You may be able to apply for the Motability Scheme if you claim one of these means of support:
- Enhanced rate mobility part of Personal Independence Payment (PIP)
- Higher rate mobility part of Disability Living Allowance (DLA)
- Enhanced rate mobility part of Adult Disability Payment (Scotland)
- Higher rate mobility component of Child Disability Payment (Scotland)
- War Pensioners' Mobility Supplement (WPMS)
- Armed Forces Independence Payment (AFIP)
