Motability has provided an update for some customers ahead of new law changes being rolled out in the coming weeks.
Chancellor Rachel Reeves confirmed in the Autumn Budget that significant changes would be made to the Motability scheme following concerns.
Labour announced that it would limit tax breaks available to Motability, which will help to save more than £1billion over the next five years.
VAT relief for top-up payments made to lease more expensive vehicles will also be removed for new leases from July 2026.
The changes also outline that Insurance Premium Tax will apply at the standard rate to insurance contracts that are part of the Motability scheme.
Motability said it would also remove luxury vehicles from the scheme, discontinue overseas breakdown cover and reduce its lease mileage limit.
Changes launching on July 1, 2026, will not be introduced for customers who receive their allowance from Social Security Scotland.
The Motability scheme operates under a separate agreement in Scotland, namely the Accessible Vehicles and Equipment Scheme (AVES).
Motability has provided an update on its service ahead of the planned changes in July
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As a result of this difference, changes to Motability in Scotland need to be agreed with the Scottish Government before they can be rolled out.
Motability confirmed that it was continuing discussions with the Scottish Government about what changes can be made and when they will be introduced.
Before any changes are confirmed, customers receiving an allowance from Social Security Scotland can place an order as normal with the current lease package.
However, they must be in the last three months of their lease to be able to place an order for their next vehicle.
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Significant changes to the Motability scheme will be introduced on July 1
| MOTABILITYThe current lease package in Scotland
For a three-year lease:
- 60,000 miles
- Up to eight tyre replacements
- 5p excess mileage fee (plus standard rate VAT)
- No VE103 admin fee to take your car abroad
For a five-year Wheelchair Accessible Vehicle (WAV) lease:
- 100,000 miles
- Up to 10 tyre replacements
- 5p excess mileage fee (plus standard rate VAT)
- No VE103 admin fee to take your car abroad
| MOTABILITYThe scheme also confirmed that the Trustees of the Motability Foundation have approved a one-off discretionary grant to pay for the additional costs of orders at the current lease package.
This support will be provided while Motability continues to discuss changes with the Scottish Government.
Social Security Scotland issues allowances for Scottish Adult Disability Living Allowance (SADLA), Adult Disability Payment (ADP), and Child Disability Payment (CDP).