The Motability scheme provides a vital lifeline for thousands of people across the UK, enabling those with disabilities to lease a car, powered wheelchair, or mobility scooter. It is crucial to understand that this is not a 'free car' programme. Participants exchange all or part of their mobility allowance from a qualifying benefit to cover the lease, and many face an upfront payment.
Who is Eligible for the Motability Scheme?
To join the scheme, you must be receiving one of several specific disability benefits at the higher or enhanced rate for mobility. You must also have at least 12 months remaining on your award. The qualifying benefits are clearly defined by the scheme's operators.
The list of eligible benefits includes:
- The higher rate mobility component of Personal Independence Payment (PIP).
- The enhanced rate mobility part of Adult Disability Payment (ADP) in Scotland.
- The higher rate mobility component of Disability Living Allowance (DLA).
- The higher rate mobility component of Child Disability Payment (CDP).
- Armed Forces Independence Payment (AFIP).
- War Pensioners' Mobility Supplement (WPMS).
It is important to note that you cannot apply if you receive a lower rate of mobility allowance. Benefits such as Attendance Allowance, Carer's Allowance, or Employment and Support Allowance (ESA) do not qualify for the scheme on their own.
What Does the Lease Package Include?
When you lease a vehicle through Motability, you receive a comprehensive package designed to minimise hassle. You will get a brand-new vehicle with a host of included services for the duration of the lease, which is typically three years.
The full package covers:
- Fully comprehensive insurance.
- Servicing, maintenance, and repairs.
- Full RAC breakdown assistance nationwide.
- Vehicle tax for the lease period.
- Cover for up to three named drivers.
- Kwik Fit replacement tyres.
- Windscreen repair or replacement.
- A 60,000-mile allowance over three years (100,000 for Wheelchair Accessible Vehicles).
- Many adaptations at no extra cost.
Recent Government Changes to the Scheme
In the latest Budget, the Government announced significant updates to the Motability scheme. Chancellor Rachel Reeves confirmed that certain luxury car models, including brands like BMW and Audi, would no longer be eligible for lease.
Furthermore, VAT will now be set at the standard 20% rate for the majority of advance payments made on cars leased through the scheme. The government also plans to remove the current 12% exemption on Insurance Premium Tax.
The only exceptions to these new tax rules will be for vehicles requiring 'substantial adaptations', such as those for wheelchairs or stretchers. These changes underscore that the scheme is intended for essential mobility, not luxury.
With over 815,000 current leases, the Motability scheme remains a cornerstone of support for disabled people in Britain. Those interested should visit the official Motability website for comprehensive guidance and to begin an application.
