The Department for Work and Pensions (DWP) has announced a significant update for Personal Independence Payment (PIP) claimants who use the Motability Scheme. The organisation has published its revised price list for vehicle leases covering January to March 2026, introducing a wider selection of electric cars and adjusting costs for the first time this year.
What's New in the Motability Scheme for 2026?
Scheme bosses confirmed the updated list includes nearly 100 vehicle options available with no or a low upfront Advance Payment. An Advance Payment is only required if a user selects a car that costs more than their mobility allowance, typically higher-specification models or Wheelchair Accessible Vehicles (WAVs). This payment is made just once, at the price quoted when ordering.
Officials highlighted a growing focus on electric vehicles (EVs), driven by the government's Zero Emission Vehicle (ZEV) mandate. This policy is making petrol and diesel models less common as manufacturers prioritise EV production. The Scheme also pointed to rising costs across the automotive sector, including materials, insurance, and repairs, influencing the new pricing.
Furthermore, tax changes announced in the Autumn Budget will affect the Scheme from July 2026. These include applying VAT to Advance Payments and an increase in Insurance Premium Tax (IPT), both of which will be incorporated into new lease agreements from that date.
Available Cars and Advance Payments
The new price list categorises vehicles based on the required Advance Payment. For those seeking to avoid an upfront cost, several options are available, including electric and hybrid models.
Vehicles with No Advance Payment:
- Mini Countryman (electric, automatic)
- Mazda 2 Hybrid (petrol/electric hybrid, automatic)
- Vauxhall Frontera (electric, automatic)
- Nissan Juke (petrol, automatic)
- Jeep Avenger (petrol, manual)
- Renault Captur (petrol, manual)
- Toyota Yaris (petrol/electric hybrid, automatic)
- Citroen C3 Aircross (electric, automatic)
Vehicles with an Advance Payment under £500:
- From £149: Nissan Qashqai (petrol, manual)
- From £299: Kia EV4 (electric, automatic)
- From £299: Hyundai Inster (electric, automatic)
- From £399: Vauxhall Mokka (petrol, automatic)
- From £499: Honda HR-V (petrol/electric hybrid, automatic)
Vehicles with an Advance Payment under £1,500:
- From £749: Skoda Enyaq (electric, automatic)
- From £749: Hyundai Tucson (petrol, manual)
- From £849: Toyota Corolla (petrol/electric hybrid, automatic)
- From £995: Ford Kuga (petrol, manual)
- From £1499: Citroen Berlingo (electric, automatic)
The Push Towards Electric Vehicles
The Scheme is actively encouraging users to consider switching to an electric car, noting potential annual savings of around £225 for those who can charge at home, compared to running an equivalent petrol model. A selection of new long-range EVs featured in the update includes:
- From £299: Kia EV4 (automatic)
- From £749: Skoda Enyaq 85 SE L (automatic)
- From £999: Kia EV3 (automatic)
This quarterly update underscores the Motability Scheme's adaptation to industry shifts and government policy, offering PIP claimants updated choices amidst a rapidly evolving automotive landscape.
