Episode Details

Motability Scheme for Disabled Drivers Faces Higher Costs: New Taxes and Changes in Lease Terms

The Motability car leasing scheme, which allows around 890,000 disabled people on higher-rate mobility benefits to lease new vehicles, is facing increased costs due to new taxes and changes in lease terms. The scheme, which previously included luxury brands like BMW and Mercedes, now has a ban on these brands and new charges for taking cars abroad. Additionally, value-added tax has been added to advance lease payments, and insurance premium tax will start in July 2026. These changes aim to offset a £300 million tax increase from last years budget. While new leases may see advance payments rise by £300-£400 on average, many vehicles will still not require any upfront payment. The schemes chief executive, Andrew Miller, emphasized that the changes aim to spread the burden fairly based on typical usage.

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