Motability: Finance

(asked on 14th July 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the Autumn 2025 Budget on transport accessibility for disabled people through the Motability Scheme.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
This question was answered on 17th July 2026

The Motability Scheme provides a vital lifeline to those who need it, however it historically benefitted from tax breaks which supported provision beyond the scheme’s core objectives, such as the lease of luxury cars. That is why at Budget 2025 the Government made tax changes to the scheme to ensure it delivers fairness for the taxpayer.

Prior to Budget 2025, the Government engaged closely with the Motability Foundation to ensure the Scheme would continue to provide access to transport for its customers, including the provision of a range of affordable vehicles which suit customers’ varying needs. This means customers are still able to access a range of vehicles using only their disability benefit, in line with pre-Budget provision. Additionally, vehicles designed or substantially and permanently adapted for wheelchair and stretcher users were not impacted by tax changes.

The Government consulted closely with the Motability Foundation charity to understand in depth how tax changes would impact the Motability Scheme and their customers. Our assessment of these impacts has been published on GOV.UK and can be found here: Motability Scheme: reforming tax reliefs - GOV.UK.

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