The Motability Scheme explained: who qualifies, what’s included and what changed in 2026

The Motability Scheme lets disabled people exchange the mobility part of certain benefits for an all-inclusive lease on a new car, wheelchair-accessible vehicle, scooter or powered wheelchair. Insurance, servicing, breakdown cover, tyres and car tax are included, so the weekly cost is predictable. Around 815,000 people use it.

The scheme changed for new leases from 1 July 2026, with VAT added to Advance Payments, insurance tax on the lease and a lower mileage allowance. This guide explains who qualifies, how it works and what the changes mean.

Last updated 27 October 2026. Information comes from Motability Operations, Disability Rights UK and motoring press reports (see the sources at the end).

Key takeaways

• You need a qualifying mobility benefit, such as the enhanced rate mobility component of PIP, with at least 12 months left on the award.
• Your allowance is paid directly to Motability to cover the lease, usually for three years on a car.
• The lease includes insurance, servicing, maintenance, breakdown cover, tyres and car tax.
• Some cars need an upfront Advance Payment; others need none.
• From 1 July 2026, new leases have 20% VAT on Advance Payments and 12% Insurance Premium Tax on the insurance.
• Premium brands including BMW, Mercedes-Benz, Audi and Lexus were removed from the scheme in November 2025.

In this guide

• Who qualifies for Motability?
• How does the scheme work?
• What’s included?
• What changed in 2026?
• Can you get an electric car through Motability?
• Is Motability good value?
• Frequently asked questions
• Sources and further reading

Who qualifies for Motability?

You can join if you receive one of these, with at least 12 months remaining on the award:

• The enhanced rate of the mobility component of Personal Independence Payment (PIP)
• The higher rate of the mobility component of Disability Living Allowance (DLA), including child DLA
• The enhanced rate of the mobility component of Adult Disability Payment (Scotland), or the higher rate mobility component of Child Disability Payment
• Armed Forces Independence Payment
• War Pensioners’ Mobility Supplement

The standard rate of PIP mobility, and the daily living component on its own, don’t qualify.

You don’t need to drive. A family member or carer can be a named driver, and a car can be leased for a disabled child from the age of three. The car must be used for the benefit of the disabled person.

How does the scheme work?

1. You choose a car (or scooter or wheelchair) from a Motability dealer.
2. Your mobility allowance is paid directly to Motability Operations instead of to you. The enhanced PIP mobility rate is around £80 a week in 2026/27.
3. If the car costs more than your allowance covers, you pay an Advance Payment upfront. Many cars need no Advance Payment.
4. The lease usually runs for three years for a car, and five years for a wheelchair-accessible vehicle.
5. At the end, you hand the car back and can choose a new one.

What’s included?

• Insurance for the disabled person and named drivers
• Servicing, maintenance and repairs
• Breakdown cover in the UK
• Tyre replacement, within limits
• Vehicle tax
• A mileage allowance

Adaptations, such as hand controls, are also available, and many are free.

What changed in 2026?

Following the Autumn Budget 2025, these changes apply to new leases ordered from 1 July 2026. Existing leases continue on their original terms until they end.

• VAT on Advance Payments. 20% VAT now applies to the upfront Advance Payment, and to charges such as excess mileage and early termination. It does not apply to the lease payments made from your allowance. Motability estimated the average Advance Payment would rise by around £400 over a three-year lease, and said it would absorb as much of the extra cost as possible.
• Insurance Premium Tax. IPT at the standard 12% rate now applies to the insurance included in the lease.
• Wheelchair-accessible vehicles are exempt from both tax changes.
• Lower mileage. The mileage allowance for standard car leases has been cut to 30,000 miles over three years, or 10,000 a year.
• Tyres and travel. Tyre replacements are now capped, and overseas breakdown cover is no longer included as standard.
• Fewer premium brands. BMW, Mercedes-Benz, Audi and Lexus cars were removed from the scheme on 24 November 2025. Wheelchair-accessible vehicles based on vans such as the Mercedes-Benz Sprinter are still available.

Motability has also set a target for half of the vehicles it leases to be built in Britain by 2035.

Can you get an electric car through Motability?

Yes. Electric cars are available on the scheme. Before choosing one, think about where you will charge it and how far you travel, especially with the lower mileage allowance. Charging at home is far cheaper than public charging. See EV charging explained and owning an EV without a home charger, and ask Motability what charging support is available.

Is Motability good value?

For many people it is, because insurance, servicing, repairs and tax are all covered for a fixed weekly amount, and the cars are new. It is less attractive if you drive a lot of miles, want a premium brand, or would rather keep your allowance as cash and buy or run your own car. If you are considering that, compare the full running costs, including insurance, before deciding.

Frequently asked questions

Who is eligible for a Motability car?

People receiving the enhanced rate mobility component of PIP or Adult Disability Payment, the higher rate mobility component of DLA or Child Disability Payment, Armed Forces Independence Payment or War Pensioners’ Mobility Supplement, with at least 12 months left on the award.

Does Motability include insurance?

Yes. Insurance is included in the lease for the disabled person and named drivers.

What changed with Motability in July 2026?

For new leases, VAT now applies to Advance Payments, Insurance Premium Tax applies to the included insurance, the mileage allowance has been reduced to 30,000 miles over three years, and tyre replacements are capped. Existing leases are not affected.

Can I still get a BMW or Mercedes on Motability?

No. BMW, Mercedes-Benz, Audi and Lexus cars were removed from the scheme in November 2025, though van-based wheelchair-accessible vehicles are still available.

Do I have to drive to use the Motability Scheme?

No. You can have named drivers, such as a family member or carer, as long as the car is used for your benefit.

Sources and further reading

• Motability: Budget changes FAQs
• Disability Rights UK: Motability answers concerns over the Government’s plans
• Fleet News: Budget 2025 Motability tax breaks cut
• PetrolPrices: Motability’s biggest shake-up in years starts 1 July
• Howards Group: Motability Scheme changes from July 2026
• Honest John: Motability cars guide 2026

About this guide: Rooster is a UK car insurance provider and is not connected to the Motability Scheme. This guide is general information for UK drivers. Check eligibility, prices and lease terms directly with Motability Operations.

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