Luxury car brands such as BMW and Mercedes Benz are being removed from the Motability scheme immediately, it is being widely reported.

Although only about one in twenty cars leased under the scheme are from premium manufacturers, and claimants have to meet the additional costs from their own pockets, their availability has been a cause of outrage in parts of the media for some time.

Motability will now aim to ensure that 50% of the vehicles it provides are made in the UK by 2035, giving a boost to British manufacturers.

It had been reported that the chancellor was planning to end VAT exemption for the Motability scheme, but this plan was widely criticised as likely to put the programme out of the financial reach of most claimants.  The move to ban luxury cars is seen as an attempt by the government to look like it is cracking down on the Motability scheme, but will not save the exchequer any money at all.

Budget update

VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from July 2026, so VAT will be payable at 20% on top-ups.

Insurance Premium Tax will apply at the standard rate of 12% to insurance contracts on the Scheme.

These tax changes will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users.

Motability will remove luxury vehicles from the scheme, discontinue the inclusion of overseas breakdown cover and reduce their lease mileage limit. The government say that this will bring Motability leases more in line with those available commercially to most people.

Together, these measures are expected to save just over £1bn by 2030.

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  • Thank you for your comment. Comments are moderated before being published.
    · 6 days ago
    Just been into my local garage MINI to place an order for a motability vehicle after searching far and wide decided on a new vehicle that was in stock for delivery in 1-2 weeks instead of the projected build time of 3-6 months only to be told buy 3 separate main dealers it was not available as it had optional wheels on it ( which were already on the car and i was willing to pay for ) and as a motability customer i was not allowed to add ( they were already on it ) any options to a new car anymore. Contacted motability who were clueless about the changes.
    So BMW MINI are effectively discriminating against disabled customers 
  • Thank you for your comment. Comments are moderated before being published.
    · 8 days ago
    There are only 2 electric cars that my wife can get into unaided, Lexus UX300e an Hyundai that was uncomfortable for her.  Fortunately, we picked our car before the budget and picked up a lovely Lexus on the Saturday after the budget.  Other cars may have been available but we wanted a local dealer within 6 miles of home.
  • Thank you for your comment. Comments are moderated before being published.
    · 8 days ago
    Regarding claimants on PIP Mobility in this section. Whilst it is good to air your problems with what the present Labour Chancellor has recently said in her Autumn Statement here, so others can be informed and empowered by them.
    It is only Labour Members of Parliament that can put your complaints to other Labour Party members to see if a suitable agreement between them about altering what the Labour Chancellor has stated can be achieved collectively. Then an amendment can be proposed and put to Parliament for a decision. This has already proven worthwhile over the Winter fuel allowance being reinstated. So we could achieve changes if enough of us contacted our relatives for them to complain to there MP as well as us where they live and friends also complaining as we all do similar to our relevant Members of Parliament about the changes to Motability Cars Payments, types of suitable cars, and not least the chancellor stopping mobility payments in PIP benefits to some with physical and or mental health severely disabled who have for some time been allowed Mobility Payments and a car which she also said  she intends to stop as well!
    To contact your MP look on google or similar by saying “Who is the Labour Member of Parliament for (where you live and maybe put your post code in as well”)This will bring up all details within there website that you need to do all I suggest. Be polite and give clear details of the problems caused to you and others. I have already commented in Disability Motoring “DM” and they replied we will keep an eye on this for you and act accordingly, when more is known. Maybe it’s worthwhile you doing similar.
    Good luck 
    Paul
  • Thank you for your comment. Comments are moderated before being published.
    · 9 days ago
    Not sure if you guys have heard this here is a snippet Motability will also remove overseas breakdown cover from the scheme and lower the mileage limit on its leases, and it said it was creating a new “special investigations unit”, even though the rate of “misuse” had remained stable, following a “growth in customer numbers”. So Motability customers will be taxed even with having adaptations added to your car on the AP and insurance tax at 20% I think this is a breach of equality act as if you can have and afford the giant APS on WAV cars you will not pay a penny VAT now this makes a two tier system which is quite unjust and not only that this is going to happen as well although the going abroad will not affect me it still seems that if you did want to take your car over the sea you should be able to anyway here is what Motability are going to be doing:  Motability will also remove overseas breakdown cover from the scheme and lower the mileage limit on its leases, and it said it was creating a new “special investigations unit”, even though the rate of “misuse” had remained stable, following a “growth in customer numbers”. Now this special secret Gov investigations team sounds a bit like the DWP and I always thought if you have nothing to hide then it is ok but it is a wee bit frightening that not only innocent people if reported by a nasty person which we all know exist this Motability investigations team could be outside you house following you and make some paranoid now they know and trusted motability may become like unwell due to not knowing they are being checked I think this is really sinister an attack on disabled people and we all know that there has been and will be those that either do not know or do know that certain rules apply to the scheme and there will be some abuse but like the DWP they get it wrong sometimes and it is just not what Motability I thought should be doing unless they have evidence of wrongdoing 100%.  
  • Thank you for your comment. Comments are moderated before being published.
    · 10 days ago
    Disgraceful. Yet again the disabled are an easy target. Maybe I’ve forgotten that I intentionally got Progressive MS, intentionally lost my job of 30 years and intentionally put myself in a wheelchair!
    I’m staggered that a Labour government would do this
    • Thank you for your comment. Comments are moderated before being published.
      · 7 days ago
      @Giovanni It won’t affect you as a wheelchair user. Read the full article.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    I must admit to being a little confused on this matter. Are we not all in possession of free cars receiving  £5,000 a month in  benefits as well as free housing and  council tax. Our heating and electricity paid for plus of  course we are blocking all the supermarkets in the day and twice a week blocking the leisure centre car parks when we go out to play wheelchair rugby.
    Sorry my mistake that's what we dream of.
    I feel I can remove my tongue from my cheek now.
    Nigel2025
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    Please forgive me for not fully understanding. Is the mileage going to be capped too? I work full time for the local authority and use my car or I couldn’t work. I have young people I visit for work and all over the country. I’ll soon loose my job if I have to refuse to do visits further away. I’d like some clarity on this please so I fully understand. Thanks so much  
    • Thank you for your comment. Comments are moderated before being published.
      · 10 days ago
      @Michelle
      Are you using your car during the day as part of your job? If so, you need business insurance.
      If you were to have an accident during the work day while carrying out work duties the Motability insurer wouldn't pay out.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 days ago
      @Michelle Although not confirmed it has been mentioned by Motability that alongside a few other things, they are considering the lowering of the mileage allowance. They intend to think about this over the next few months, with the intention of reaching a decision by the Summer 2026. I expect they will come up with a few ideas and then consult us with the options, allowing us to choose in a survey. then make a decision from the most selected by us.

      But please in the mean time don't stress about what might or might not happen, hopefully we will be part of the process.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    So called luxury vehicles are just their budget range anyway and never value for money or anywhere near the quality of their rivals.

    With a speech impediment voice commands are a redundancy for me.

    I need less digitalisation and more practical buttons and switches.

    I need a higher specification vehicle because they can be had at the manufacturing stage and not these pathetically overpriced adaptations.

    I am an engineer and they are in no way ergonomically satisfactory.

    They just add to my woes.

    Maybe if they got themselves a disability and became like us they would understand our difficulties in dealing with an able-bodied world.

    They'll always be ignorant.


    • Thank you for your comment. Comments are moderated before being published.
      · 11 days ago
      @Andy Grey Rider I agree. I have owned many over the years. British made adaptations are poorly made. Take a look at cars with lowered floor/ramp adaptations when only a few years old. Take a note of the corrosion. Then have a look at what Toyota do in Japan - manufacture disability specific vehicles on the same production line as their standard vehicles, referred to as Welcab versions.  There is no comparison.  
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    The vast majority of those wishing to use the Motability scheme Want to get a car that fits their disability needs As well as fits their budget for any deposit required While it might be nice to choose the colour of the car Both the colour and badge which any car might have is secondary to getting the freedom from having an affordable Motability car With many unable to afford those higher deposits required for those luxury cars Many in fact find the scheme out of their reach before these changes were even made As many need to allocate their PIP for other mobility needs This was just a smoke screen to try and get some divert attention away from the other things within the budget But look behind the headlines It is not going to save much money If any money at all 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    The chancellor in her 2025 Autumn Budget speech said the physically disabled will have there mobility cars options reduced and have to pay more to have one with car makes and models restricted which to some persons maybe causing problems they previously did not suffer.

    The Chancellor also said But all she has to do is to stop paying the Mobility part of PIP then Motability will as in their contract make you return the car, most likely to the dealer you got it from.
    If she is allowed to get away causing and the mentally disabled 

    BY the way I have have already done as above myself by looking up my Labour member of parliament for where I live by looking up on the internet the Labour MP. You then when you see who they are are able to write to them on a prepared form. No internet? Go to your Library they will help you, that’s if they are still there!





  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    I have written to my local MP to ask her to raise the issue in parliament. Misinformation and lies to add a distraction from more pressing issues. There is no free car, we choose the cars based on our needs, not anything else. I have a Renault Captur - I needed an automatic, high seat access, parking sensors/camera and enough space for any supplies I need to take with me, sufficient reach adjustment o the seat and steering wheel. Still nearly £1000 advance payment. I went hybrid as I can't have a charger at home, living on a Victorian terraced street with no drives/off road parking. Can't ever guarantee which street I'll end up parking in.

  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    I don’t want or require a luxury vehicle on the scheme but as a stroke survivor I require something larger than the small cars offered without top up downpayment. I have one leg and arm that do not bend easily

    I carry a wheelchair and rollator in the boot so a medium SUV/estate car from the range suits me best usually requiring a top up on the deposit.

    I have struggled to get in/ out of friends small cars.

    The motability scheme allowed me to return to work so hardly a luxury. Thanks Labour government who drive about in luxury cars for picking on those who can’t fight back,!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 days ago
      @Karen Lowe Yes thanks Labour you are being ferried around in top range vehicles single occupancy apart from the driver. Some example you are. I would not wish disability on anyone but, Labour go a day as me, I've been v v ill for nearly a year, not going out unless ambulance transport involved. I'm going stir crazy, I need to be able to drive a vehicle to get on with my life, if I ever reach that stage in my illness, doubtful. I will never ever vote Labour again, never, I am disgusted by these politicians, the prime minister a puppet with a hand up his back, back tracks because he cannot face his political responsibilities, he lies, he cannot speak truthfully. Heaven knows. As for Reeves waste of time she cuts no mustard, she cannot run a book of bingo let alone the countries finances. Sick of it.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    This is a smoke screen for launching taxes on a business that is doing well. It’s the same as the Schools VAT and they are also looking into claiming VAT on Churches. I do object to a headline being called ‘right-wing’ it has nothing to do with that it’s a smoke screen like everything else with Labour. The luxury cars coming off the list again was a diversion and it’s these diversions we need to watch as they slip something else in without our knowledge. 

  • Thank you for your comment. Comments are moderated before being published.
    · 11 days ago
    I'm considering handing my car back, they made me extend it to the 5 years as I received the grant towards the AP. 
    I'd be better off having the payment to buy a 2nd hand car and use the remainder towards the large top up I pay for my rent.

    At least then the car would be mine in the end and while I still won't be able to afford those 'luxuries' the media keep saying we have (really? I've had one takeaway in about four years).
    Maybe I could afford one a year then. Oh no, wait. My rent and bills keep going up! 

    They have no idea what it's like to have our lives!
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    I was once an able-bodied person, but then I had a life-changing accident. Before my accident, I had a well-paid job that came with a choice of the type of vehicle I wanted to drive. Following my accident, I was stigmatised as "disabled, I know all my disabled friends out there will understand what I mean by this. Barriers that never applied to me as a non-disabled person suddenly came out of the woodwork and engulfed my life and that of my family. Disabled people have to face barriers every single day of their lives, such as "You can't dine here, we have no disabled access", "Please don't bring your wheelchair in here, the other customers may be offended", Sorry, we only have one space for disabled parking, etc, you all know what I mean. Now this government and the UK press have decided I am a scrounger and shouldn't have a choice in life like I did when I was able-bodied. I would ask my professional peers to think about what I am about to say before they judge thousands of other disabled people and me. "We have very few choices to make left in our lives, we can't choose to shop/eat/or go on holiday to most places in the UK because we as disabled people do not count in comparison to the profits brought on by these businesses who don't care about us only the profit they make by putting a few extra seats in where a wheelchair could be, or a family that has a child who may need that extra care but is classed as offensive by society because of the way they look or act. Shame on them all. Now we are told we can no longer have a choice as a disabled person as to what vehicle may be available on the Motability Scheme because the press feels outraged that we, people with disabilities, dare to want a choice of what we may wish to drive and yes, if it is a luxury vehicle, then no problem with that. In response to the press's hatred of all things disabled, may I offer this solution to the stigmatising attitude to all of us disabled people? Our disability is not a choice; it is something we have to manage 24/7, 52 weeks of the year. If you, the press, can take away our disabilities and place us in the company of being able-bodied again. I, for one, would give up a life of being constantly treated as a third-class citizen in return for not having a nice vehicle to drive, which helps make my day manageable, and yes, dare I say, with a little bit of comfort (oh goodness, I am disabled, I should want to feel comfortable!). I save hard, so why are you denying me a choice, as you call it? Please, national press, if you can't support us, disabled citizens, then please don't hinder us, you never know the day you may be in our exclusive company. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 days ago
      @weasley Administrator:

      Please pin this to the top of the page because it surely speaks for the majority of us, if not all.

      I wrote something like this years ago to the press when there were physical papers and magazines.

      Not one published it.

      Now we receive the same covert vitriol everywhere. 

      I am afraid to get into any conversation online because I have had people trying to break my front door down because I stood up for other disabled people.
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    Re EV Motability... Wasn't aware these are being pushed by dealerships and advisers, that should be stopped immediately... There's too many people stuck in the middle of nowhere with disabilities , and no access to charging infrastructure...
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    Though it may be unpopular, I do mostly agree about luxury cars being unnecessary...
    There are excellent options still for most, if not all, circumstances we find ourselves in...
    Some, admittedly, may have to pay a little more for a specialized model, but I do think we could show a little willing, given the cuts could have been deeper, and  will be under another government...
    I agree also that some bonus taxation and MP'S expenses and in house freebies should be looked at.
    We get a good raise on pip soon, though not a fortune, which should maintain the status quo...
    We need more focus on Disabled Working, and the underhand methods being used, when DWP are supposed to ensure no loss of benefits...
    Hope I don't disappoint too many people with my comments...
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    The salary for the CEO of Motability Operations, Andrew Miller, was reported as £460,000 in the 2024 financial year, with a total compensation package of £747,000 including bonuses and other benefits. This was a slight decrease from the previous year's total package of £765,000. 

    Maybe his salary, and any other high salaries need to be looked at, as well as looking into how many MPs and their friends have a financial interest in the scheme.
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    How as disabled people can we ‘revolt’ against this! 
    I’m sick of how we are being treated and it’s getting worse and worse and I’m so fed up! 
    Why should we have to give up the so called ‘luxury’ cars, we pay for it! 
    They are not free cars.
    I would be housebound without mine as I’m sure many people would be.
    Which would cost the government more if I used hospital transport to get to appointments etc.
    We didn’t asked to be unwell or have a disability.
    That’s just how it is for us.
    I’m so angry how we are portrayed and yes I think Motability should have said something on our behalf.
    Rant over.
  • Thank you for your comment. Comments are moderated before being published.
    · 12 days ago
    Whilst i couldn't afford a 'luxury' car, I still fail to see why these have been demonised. The media have been appaulling.  They have put out misinformation and have damaged the lives of so many people.  The media pushed the government to act and push on the tax etc onto motability vehicles.  Meanwhile, people like myself will be faced with having no vehicle, no volunteering, no therapies and generally an isolated life.

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