New Motability rules come into force - what it means for you

Changes to the Motability scheme which the government hope will save money have come into force.

The Motability scheme helps people with disabilities lease a new car, wheelchair-accessible vehicle, scooter or powered wheelchair.

Since it was launched in 1978, it has supported millions of disabled people and their families with accessible and affordable mobility solutions.

But the government is changing the system as part of a wider effort to save money, while still ensuring people can access the support they need.

What’s changing?

Under the new system, VAT will now apply to advance payments for more expensive vehicles, and insurance premium tax will apply to new leases.

This comes after luxury vehicles were removed from the scheme in last year’s Budget.

“We’re saving £1 billion of taxpayer money by removing VAT relief from some new Motability leases, whilst ensuring the scheme still supports disabled people’s mobility and independence,” said work and pensions secretary Pat McFadden.

“We’re building a fair welfare system and an economy that works for everyone.”

Who can join the Motability scheme?

You may qualify if you receive one of the following allowances:

• enhanced rate mobility part of personal independence payment (PIP)
• higher rate mobility part of disability living allowance (DLA)
• higher rate mobility part of Scottish adult DLA
• enhanced rate mobility part of adult disability payment (Scotland)
• higher rate mobility part of child disability payment (Scotland)
• war pensioners’ mobility supplement (WPMS)
• armed forces independence payment (AFIP)

Carers and parents can also apply on behalf of the disabled person, including for children aged 3+ or non-drivers.