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As you may be aware, we have announced changes to the Motability Scheme in all of the UK, except Scotland.
Scotland operates under its own distinct agreement called the Accessible Vehicle and Equipment Scheme (AVES). We are therefore working closely with the Scottish Government to understand how any changes may affect customers who receive allowances through Social Security Scotland. This work is ongoing with details still to be finalised.
If you already have a lease with us, nothing will change for you right now. These updates will apply only to new orders placed from 1 July 2026, and only once any changes are agreed with Social Security Scotland. At the moment, the changes announced only apply to customers who receive a qualifying allowance from the Department for Work and Pensions (DWP) or Veterans UK.
These changes are in response to last year’s Autumn Budget, where the UK Government announced tax changes that affect the Scheme. From 1 July 2026, VAT and Insurance Premium Tax (IPT) will apply to most leases.
Together, these tax changes mean it will cost significantly more to run the Scheme. If we did nothing, the average cost of a new lease would increase by around £1,100. It was clear to me that simply passing all of these costs on to customers was never an option. Our responsibility is to keep the Scheme as affordable as possible and make sure it remains sustainable in the long term.
So in response, we’re making some careful considerations about what we can offer in our lease package.
We will contact you as soon as we have more information about what this means for you, and your next lease. In the meantime, you can continue to place orders as normal.
The best place to stay up to date is our dedicated change page on the Scheme website. We’ll keep this updated, so you always have the latest information.
Thank you for being part of the Motability Scheme, and for the trust you place in us.
Andrew Miller
Chief Executive Officer, Motability Operations
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