How cuts to the Motability scheme could affect drivers with disabilities

For more than 30 years, the Motability scheme has been a lifeline for around 815,000 people, helping those on mobility allowances – such as Personal Independence Payment (PIP) – lease a car, scooter, or powered wheelchair. But with proposed cuts looming, the future of this vital support hangs in the balance.

Chancellor Rachel Reeves is reportedly planning to cut the Motability scheme, aiming to save around £1bn a year. The changes could limit access for some people with disabilities, remove tax breaks, and even drop luxury models such as BMWs and Mercedes, which make up about 40,000 cars, The Times reports.

While the government frames these changes as cost-saving measures, the impact on disabled individuals could be profound. Here’s what could be at stake.

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What is the Motability scheme and what changes could we see?

The Motability scheme is a charity programme that helps people with disabilities get around more easily. It lets you exchange your mobility allowance for a brand-new car, powered wheelchair, or scooter. The scheme takes care of the tricky stuff: insurance, servicing, and repairs are all included in one simple package, and it can be tailored to meet your individual needs.

To qualify, you need to be receiving a mobility allowance that’s expected to last at least 12 months, such as the higher rate mobility component of the Disability Living Allowance (DLA), or the enhanced rate of the Personal Independence Payment (PIP).

The scheme is supported by government funding through these allowances, which effectively subsidises your lease, making it more affordable.

The Chancellor is considering removing certain tax breaks, including the exemption that currently allows cars leased under the scheme to be free from VAT and insurance premium tax.

Why the motability scheme matters

For many people with disabilities, Motability provides the only practical way to travel independently. That’s because public transport often falls short, with broken pavements, inaccessible vehicles, and limited service options making everyday journeys difficult or impossible.

Emma Vogelmann, co-chief executive of Transport for All, warns that scaling back the scheme could “lock [disabled people] away from daily life,” forcing them to rely on less suitable transport, limiting access to work or appointments, and reducing participation in community life.

Meanwhile, charity Scope warned that the changes could “heap extra costs onto disabled people all over Britain.” They also cautioned that restricting eligibility to Motability could hit people with disabilities on lower incomes especially hard.

Motability is also far more than a car leasing service – it’s a tool for empowerment. It allows people to maintain employment, access education and training, connect with family and friends, and participate fully in society.

Reliable transport also supports health and wellbeing, making it easier for people with disabilities to attend medical appointments, therapy sessions, and support services, while helping to tackle social isolation.

The scheme also allows vehicles to be adapted with hand controls, wheelchair access, or modified seating, ensuring safety, comfort, and independence. Financial support through PIP, plus VAT and insurance exemptions, makes these adaptations affordable too.

Beyond practicality, the scheme offers dignity and choice. Participants can select vehicles that suit their needs and lifestyle: from fully adapted models to environmentally friendly options.

So, cuts to the Motability scheme would ripple far beyond the loss of a car. They threaten independence, social inclusion, and the very ability to participate in everyday life. For many people with disabilities, losing this support isn’t just inconvenient… it’s life-altering.

Criticisms of the Motability scheme

The Motability scheme has recently come under scrutiny, with some critics arguing it’s being misused.

At the Conservative Party conference, Kemi Badenoch said the vehicles “are not for people with ADHD,” highlighting concerns that some benefits and cars are being claimed by people without the severe disabilities the scheme was designed to support.

Shadow work and pensions secretary Helen Whately also claims that online TikTok videos have appeared showing how some individuals try to claim free cars, with some even paying for services to boost their chances of success.

Reform UK echoed these concerns, with policy head Zia Yusuf saying spending on the scheme has “spiralled out of control.” He’s also called for targeted support for those with genuine, life-limiting disabilities.

The former head of Motability at the Department for Work and Pensions, Matt Ryder, has also called on the Chancellor to reassess whether the subsidies given to the scheme are “giving genuine value for money”.

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