Labour urged to scrap Motability changes as thousands face new laws and costs

Hemma Visavadia
Mon, 06 Apr 2026 05:00:02 +0000

Labour has been urged to cancel upcoming rule changes to Motability vehicles, after campaigners warned the plans could hit disabled people's independence and finances.

A fast-growing public petition has already passed 21,000 signatures, calling on ministers to halt the reforms before they come into force in July.

Supporters warned that the changes, announced by Chancellor Rachel Reeves at the Autumn Budget, will make it more expensive for many disabled people to access a car through the Motability Scheme.

At the centre of the row are new tax measures and rule changes affecting future leases.

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From July 1, VAT will apply to some additional payments on higher-value vehicles, while Insurance Premium Tax will also be extended to many Motability leases.

The petition stated: "We believe this is unfair to the most vulnerable in society and could affect their independence.

"Many disabled people earn considerably less than average, and a cost increase could mean they struggle to get a car."

Campaigners argued that cars are not a luxury for disabled people but a necessity.

Many rely on them for even the shortest journeys, particularly if walking is difficult or impossible.

It added: "Many disabled people also need to use their car for short journeys, where others may be able to walk, and mileage soon adds up because of this."

There are also concerns about people living in rural areas, where public transport options can be limited or non-existent.

The petition highlighted that while some cities may have alternatives, a lack of transport links elsewhere "may potentially take people's independence away".

Under the plans, the tax changes will apply to new leases from July, meaning existing customers will not be affected straight away.

However, they could face higher costs when their current agreements end.

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Government figures suggested some users may respond by switching to cheaper vehicles, while others could leave the scheme entirely if it becomes unaffordable.

Ministers explained that the changes are designed to improve fairness and bring the scheme in line with the wider leasing market, while still protecting those with the greatest needs.

But critics said the reforms risk disproportionately affecting disabled people, who make up the entire user base of the scheme.

The Motability Scheme itself has acknowledged the impact of the tax changes and said it is making adjustments to remain sustainable.

These include a standard mileage allowance of 30,000 miles over three years for most customers, and 50,000 miles over five years for wheelchair-accessible vehicles.

Motability's Chief Executive Andrew Miller defended the changes, saying: "It's about fixing and maintaining us for many, many years to come".

He added that the organisation's priority is to "protect what matters most in your lease" and "maintain the good value of the Scheme".

The Government must respond to the petition after it has passed 10,000 signatures. If it reaches 100,000, it will be considered for a debate in Parliament.