Worries have emerged about a 'reduction in choice' for wheelchair accessibility following a decision to cut the number of vehicles offered through the Motability scheme.
The government made the call to strip out premium marques including BMW, Mercedes-Benz, Audi, Lexus, and Alfa Romeo last month, whilst also eliminating all coupes and convertibles, with the aim of redirecting the scheme towards essential, practical motors.
Adding to the concerns, the Department for Work and Pensions has confirmed July 2026 as the date when VAT will be applied to Advance Payments, with Insurance Premium Tax also being levied on Scheme leases following Budget changes last month.
The Motability company, which runs the massive scheme representing one in five car sales across the UK, has calculated that the typical Advance Payment, or upfront cost, of a vehicle will rise by approximately £400 over the three-year package.
In a fresh challenge, Labour's Neil Duncan-Jordan questioned what effect the change dramatically limiting the car range might have on wheelchair users, reports the Liverpool Echo.
He pressed Secretary of State for Work and Pensions Pat McDadden: "Whether Motability's removal of luxury vehicles will result in a reduction of choice for wheelchair accessible users."
Sir Stephen Timms, Minister of State for the Department for Work and Pensions, has assured that the tax changes will not significantly affect vehicles 'substantially adapted for wheelchair users'. He also mentioned that means-tested grants are available: "The Motability Scheme is a lifeline for many disabled people and families, supporting their independence by enabling them to lease a car, wheelchair accessible vehicle, scooter or powered wheelchair in exchange for an eligible disability benefit allowance.
"We are protecting the taxpayer through changes to the Motability scheme, ensuring it supports disabled people whilst delivering efficient use of taxpayers' money. This includes the removal of some luxury vehicles from the leasing scheme while maintaining a range of vehicles to support disabled people. Tax changes will not impact vehicles substantially adapted for wheelchair users, or existing leases, and Motability will continue to provide vehicles at no additional cost to the value of eligible disability benefits, ensuring that people can access vehicles suited to their needs, whether that's a larger vehicle or extra boot space to carry wheelchairs.
"For customers who cannot afford essential costs or need more complex adaptations, the Motability Foundation will continue to provide means-tested grants to those most in need of financial help. In 2024/25, these grants totalled £59.3 million, supporting over 10,000 customers."
To be eligible for a Motability vehicle, individuals must be in receipt of a higher-rate mobility allowance, including the Enhanced PIP Mobility Component, Higher Rate DLA Mobility, Armed Forces Independence Payment (AFIP), or War Pensioners' Mobility Supplement (WPMS), and must have a minimum of 12 months remaining on their award.
The Government has indicated it will examine giving preference to British-manufactured brands within Motability, which represents one in five new car sales across the UK.
Labour's Jim McMahon enquired: "Whether the government has held discussions with Motability following the revision of vehicle brands supported by the scheme to prioritise British-made vehicles and to report accurate data on the number of British and non-British-made vehicles procured."
Sir Stephen responded: "Motability Operations, an independent commercial company which delivers the Motability Scheme, has announced plans to support the government's Modern Industrial Strategy. The number of British-made vehicles purchased by the scheme will reach 25% by 2030, with an ambition of 50% of vehicles registered on the Scheme being made in the UK by 2035.
"The Department for Work and Pensions will continue to meet regularly with Motability Foundation, the independent charity with responsibility for overseeing the Scheme, to discuss the Schemes operation."
