New Motability Scheme rules for Personal Independence Payment (PIP) and Disability Living Allowance (DLA) claimants in Scotland came into force on September 1, reducing mileage limits on new leases. The Department for Work and Pensions (DWP) is facing calls to reconsider the changes, which one MSP has branded a “benefit cut” for disabled people.
The Motability Scheme allows DWP benefits claimants to lease cars, with PIP and DLA among the most common qualifying benefits. Under the new terms, mileage on a three-year lease falls from 60,000 miles to 30,000 miles. For a five-year Wheelchair Accessible Vehicle lease, the allowance drops from 100,000 miles to 50,000 miles.
Why the Motability Scheme rules changed
The changes follow the Labour Party government’s decision at the 2025 Autumn Budget to apply VAT and Insurance Premium Tax to Motability leases. The new terms apply only to orders placed on or after September 1, with existing leases unaffected.
Scottish Liberal Democrat MSP Morven-May MacCallum has written to the Cabinet Secretary for Social Justice and Housing, urging the Scottish Government to review the reforms. The Highlands and Islands MSP said the changes will have a disproportionate effect on disabled people, particularly those in rural communities who depend on their cars for independence.
MSP calls for rethink over “benefit cut”
MacCallum said: “These changes are effectively a benefit cut for disabled people in Scotland and I am disappointed to learn that the Scottish Government has agreed to let these changes go ahead instead of standing firm on their commitments to disabled people and rural communities.”
She added: “I have written to the Cabinet Secretary for Social Justice and Housing to better understand what information was used before these changes were agreed. I am ultimately calling on the Scottish Government to review this decision and find a more suitable way forward that adequately recognises the importance of this scheme to the independence of disabled people across the country.”
Impact on rural disabled claimants
MacCallum said disabled people in her region did not make the decision that drove up the cost of the scheme and should not have to carry its consequences “simply because of where they live”. The MSP’s intervention highlights concerns that rural claimants face greater reliance on private vehicles due to limited public transport options.
The Scottish Government has yet to respond publicly to MacCallum’s letter. The new mileage limits remain in force for all new Motability leases placed on or after September 1, affecting claimants across Scotland who rely on the scheme for accessible transport.
