16th June 2026
For hundreds of thousands of disabled people, the Motability Scheme is far more than a way of getting a car. It provides independence, allows people to get to work, attend medical appointments, care for family members and simply take part in everyday life.
From 1 July 2026, significant changes will come into force for most Motability customers across the UK. However, Scotland is taking a different approach, creating uncertainty for many users north of the border.
What is changing?
The changes announced by Motability follow tax changes introduced by the UK Government in last year's Autumn Budget.
For most customers in England, Wales and Northern Ireland taking out new leases from 1 July, the package will change.
Among the main changes are:
VAT being applied to many Advance Payments.
Insurance Premium Tax (IPT) being added to insurance included in the lease.
A reduction in the standard annual mileage allowance from 20,000 miles to 10,000 miles for new leases.
Higher charges for excess mileage.
Some reductions in the lease package designed to offset rising costs.
Existing leases will generally continue under their current terms until renewal.
Why is Scotland different?
This is where the situation becomes more complicated.
People receiving disability benefits from Social Security Scotland do not use exactly the same Motability arrangements as elsewhere in the UK.
Instead, Scotland operates through the Accessible Vehicles and Equipment Scheme (AVES).
Because AVES operates under a separate agreement with the Scottish Government, the changes due on 1 July are not currently being introduced for Scottish customers receiving Scottish disability benefits.
At present, customers receiving:
Adult Disability Payment (ADP)
Child Disability Payment (CDP)
Scottish Adult Disability Living Allowance
can continue ordering vehicles under the existing package while discussions continue between Motability and the Scottish Government.
So why are people worried?
On the face of it, Scottish customers appear to have avoided the July changes.
But many disabled people say this has simply replaced one problem with another—uncertainty.
Questions being asked include:
How long will the current arrangements last?
Will the same changes eventually apply?
Will Scotland negotiate a different package?
Will existing customers suddenly face new rules later this year or next?
At present, neither the Scottish Government nor Motability has announced a final agreement.
That means thousands of people planning to replace their vehicle do not know what rules will apply by the time they next renew.
Rural Scotland faces particular challenges
The mileage issue has generated especially strong reactions.
A 10,000-mile annual allowance may be sufficient for many drivers living in cities with good public transport.
But Scotland presents different circumstances.
Many disabled people in rural areas regularly travel long distances to:
hospital appointments
GP surgeries
specialist treatment
employment
education
caring responsibilities
shopping and essential services.
For someone living in the Highlands or Islands, a single hospital appointment can involve a round trip of well over 100 miles.
Many campaigners argue that applying the same mileage limits across the whole UK does not reflect these very different realities.
Why has Motability made these changes?
Motability says it has been forced to respond to higher costs following changes to tax rules introduced by the UK Government.
According to the organisation, the changes are intended to keep the Scheme financially sustainable over the long term while continuing to support disabled people.
Could Scotland choose a different solution?
Possibly.
Because Scotland operates under AVES, the Scottish Government has greater involvement in agreeing how the scheme operates.
That creates several possible outcomes:
Scotland could eventually adopt the same package as the rest of the UK.
It could negotiate modified arrangements.
It could provide additional financial support to reduce the impact on Scottish users.
At the moment, none of these options has been confirmed.
What should Scottish customers do now?
Current advice is straightforward.
If you receive your qualifying benefit through Social Security Scotland:
continue using your current lease as normal
if you are within the final three months of your lease, you can still place a new order under the current Scottish arrangements
keep watching for updates from Motability and Social Security Scotland as negotiations continue.
The Bigger Picture
The Motability Scheme has transformed the lives of many disabled people over the past four decades.
The debate now is not simply about tax changes or vehicle leases.
It is about balancing the financial sustainability of the scheme with the need to preserve independence for disabled people—particularly those living in rural communities where alternatives to the car are often limited.
For Scottish users, the immediate news is reassuring: the 1 July changes are not being introduced to their AVES leases.
But until negotiations are completed, uncertainty remains, and many disabled people will continue to ask one simple question:
"What happens when my current lease comes to an end?"