The Department for Work and Pensions has confirmed that three groups of Personal Independence Payment and Disability Living Allowance claimants will be excluded from changes to the Motability Scheme. The DWP, in conjunction with Motability Operations, is tightening rules and perks around the scheme, including scrapping luxury brands, introducing new tyre and mileage allowances, and applying new VAT charges.
Exemptions for Existing Leases, Eligibility, and Wheelchair Vehicles
The DWP has stated that there will be no changes to existing Motability leases, no changes to eligibility for PIP or the Motability Scheme itself, and that the reforms do not apply to Wheelchair Accessible Vehicles. These three groups are fully protected from the upcoming adjustments.
Impact on Disabled People and Scheme Evolution
Nigel Fletcher, Chief Executive of the Motability Foundation, said: “We understand the challenges disabled people face in accessing reliable and accessible transport, and how important a Motability car is to Scheme customers. The changes to tax reliefs imposed on the Scheme in today’s budget statement mean the Scheme will need to evolve. We are working hard to minimise price increases for customers and are taking steps to assess the impact of potential changes to the leasing package. Our focus remains firmly on protecting the Scheme for those who need it most.”
Andrew Miller, Chief Executive of Motability Operations, added: “An evolved Motability Scheme will continue to put the disabled people we serve at the heart of everything we do. Changes to evolve the Scheme will involve understanding what matters most to disabled people, working closely with Motability Foundation.”
Current Usage and Eligibility
Motability is used by PIP and DLA claimants. There are 860,000 disabled people across the UK connected to the independence the scheme provides, linking them to work, healthcare, and education. To join, customers must receive a qualifying mobility-related benefit awarded by a government department or agency. These include the Higher Rate Mobility Component of PIP, DLA, Adult Disability Payment or Child Disability Payment in Scotland, as well as War Pensioners’ Mobility Supplement and Armed Forces Independence Payment.
Addressing the Transport Accessibility Gap
Motability stated: “At the heart of the Motability Scheme is a powerful belief: that everyone deserves the freedom to get about, to connect and to thrive. When the Scheme was established, it addressed a very real problem – a motor market that didn’t meet the needs of disabled people. Inaccessible designs, unaffordable costs and a lack of tailored support left many disabled people excluded from independent travel. That challenge still exists today. Research shows that public transport remains limited or unsuitable for many disabled people, particularly those who live in suburban or rural areas. Private vehicle ownership is often not a viable alternative, due to its cost, complexity and inaccessibility. The transport accessibility gap – the percentage difference between journeys undertaken by people with mobility difficulties and those people without – has been stuck at around 38% for a decade. The Scheme exists to remove those barriers. By using their government-funded mobility allowance, our customers can lease a fully serviced vehicle – be it a car, powered wheelchair, or wheelchair accessible vehicle.”
