A legal challenge has been brought against changes which are planned to the Motability scheme. This argues that the new legislation which is being put in place will place increased costs on disabled people and limit the number of suitable vehicles that they have the choice of. There have been many protests with regard to this and demonstrators say the changes were introduced without proper consultation or assessment of their impact on disabled drivers.

The situation revolves around whether the current government’s choices were legal in relation to equality duties. The result of the case will decide whether the planned reforms do indeed go ahead or whether they need to be adapted to make them fairer to the disabled community.

If you have a disability, it can be extremely difficult to find appropriate cars or other vehicles in order for you to get around and live your life independently. This is due to the fact that the majority of vehicles are aimed at the mainstream market in other words able bodied people. Disabled people need to find vehicles which have been specially adapted to suit the specific needs they have, whether this be making the vehicle easier to use if you are in a wheelchair or adapting it some other way. There are a number of vehicles available ranging from electric cars, scooters to wheelchair accessible vans.

Examples Of Planned Added Costs for Disabled Drivers

VAT on Advance Payments: A 20% VAT will be applied to the Advance Payment (the non-refundable up-front payment) for new cars, excluding Wheelchair Accessible Vehicles (WAVs). This is expected to increase advance payments by an average of £300 to £400.

Insurance Premium Tax (IPT): For the first time, a 12% IPT will be added to the insurance portion of leases. This applies to all vehicles except those “substantially and permanently adapted” for wheelchair/stretcher users.

Removal of Premium Brands: As of late 2025, premium car brands such as BMW, Mercedes-Benz, Audi, Lexus, and Alfa Romeo have been removed from the scheme, forcing users towards cheaper alternatives.

For people to be entitled to use the Motability scheme, they have to be receiving you must receive the Enhanced Rate Mobility Component of PIP/ADP, Higher Rate Mobility Component of DLA/Child Disability Payment, AFIP, or WPMS. You must have at least 12 months remaining on your award. Lower rate/component, Attendance Allowance, or ESA recipients do not qualify.

If extra costs are planned to be imposed on them for using the scheme, they will be losing the funds they actually need to pay for the support they require or if any further changes need to be made to make the vehicle more suitable for them.

Disabled people round the country have voiced their opposition to the proposed changes with many calling them devastating and punitive.

In a letter sent to Motability Operations CEO Andrew Miller on 31 March, Disabled People Against Cuts (DPAC), voices how it is “appalled at some of the planned restrictions on Motability leases”.

DPAC told Miller in its letter how it is “being inundated with concerns” from its members and supporters.

It says this already shows the “level of fear” the planned changes are causing for disabled people.

Linda Burnip, co-founder of DPAC, told DNS on Monday (6 April) that in response to the letter, Miller has agreed to meet with campaigners.

She said: “We’re pleased to say Andrew Miller has offered to meet with us to explain why they are planning to bring in these changes which would effectively rob disabled people of any independence if implemented and possibly explain why Motability feel they should bring in changes that support a right-wing Reform agenda.”

A spokesperson for Motability Operations said:

“We recognise how important the Motability Scheme is in supporting disabled people’s independence, and we understand that some of these changes have caused concern. We have responded to the letter from Disabled People Against Cuts (DPAC).

“We are making changes following the UK government Budget announcement in November about new taxes for the Motability Scheme, which would mean an average £1,100 increase to lease prices from July. We know how important a vehicle is for our customers to live independently, which is why we’ve made changes to new leases from July to reduce the increase to £400 on average. Existing leases are not affected. We’re have responded to the letter from Disabled People Against Cuts (DPAC) and would welcome an opportunity to meet and discuss the changes to the Motability Scheme.

The spokesperson added: “Changing the mileage allowance of future leases lowers insurance and maintenance costs and increases the vehicle’s resale cost, which reduces the cost of a lease. Around 3 in 4 people who use the Scheme travel within the mileage allowance from July. We understand that, in some circumstances, people may need to drive more than the mileage allowance. Any additional mileage is charged at a rate that reflects the real cost of higher use, including maintenance, insurance and wear and tear. We will be introducing an exceptions process for very limited situations before July.

“Separate to the changes announced in response to the Budget, we also want to reduce the rising cost of insurance on the Scheme. The Motability Scheme operates a shared insurance model, and managing these costs is essential to keeping it affordable and fair. Drive Smart is one of the ways we are tackling rising insurance costs. It uses industry-standard telematics technology to provide feedback on driving behaviour – such as acceleration and breaking – helping to support safer driving and reduce accidents. We are focusing the introduction of Drive Smart on customer groups where data shows accident rates are higher, including drivers under 30 – an approach that is now standard across most fleet insurance programmes.”