Government considers changes to Motability car scheme

Potential changes to the Motability scheme, which allows people in receipt of certain disability benefits to lease vehicles more cheaply including cars, scooters, and powered wheelchairs, are being considered by the government.

It is understood Chancellor Rachel Reeves is considering making changes to the scheme over concerns taxpayers are subsidising premium cars rather than providing essential mobility.

More than 50,000 people in Northern Ireland use the scheme.

One source within the Treasury told BBC News NI changes to the scheme are being considered, with the chancellor concerned about potential "unfairness".

"This isn't about disabled people doing anything wrong – it's about fixing a scheme that's lost its focus," the source said.

About 50,000 luxury cars are currently leased through the scheme across the UK.

It is understood the changes to the scheme would relate to restrictions on the types of vehicles allowed, the removal of tax exemptions and to eligibility.

A Treasury source told BBC News NI the majority of cars in the scheme have no adaptation for disabled users.

Some cars identified by the Treasury as luxury models were available on the Motability Scheme's car finder portal on Monday, with an advance payment of up to £8,000 on the lease.

Ciaran Gorman, a driving instructor and medical assessor working for the charity Disability Action, said non-disabled drivers and unadapted cars are an important part of the Motability scheme, but that they can contribute to public misunderstanding of it.

"Some people don't need adaptations," he said.

"Some people can't drive, some people have someone to drive for them, whether that's a family member or a carer. Children have Motability vehicles and obviously they don't drive.

"So there are many reasons why it may not be the stereotypical disabled person that's seen driving a car."

Motability is operated by a private company, overseen by a charity.

Motability's financial reserves have doubled to £4bn since the pandemic, mostly due to the increased value of the leased vehicles driven by scheme users.

Disability Action's head of accessibility Nuala Toman has called on the government to abandon its plans, saying the moves would, "punish people for being disabled and push many deeper into poverty and isolation".

She said removing VAT exemptions would increase costs by about "£3,000 for even the most basic models, making independent mobility unaffordable for many".

Disabled people are more likely to live in households without access to a car, to struggle with public transport and to experience financial hardship, according to a study by disability charity Transport for All.

The Motability scheme is intended to help address the issues by allowing disabled people to hand over a portion of their benefits to access cheaper leases for new cars.

For cars leased through the scheme, they will also fund necessary adaptations, like hand controls for wheelchair users, provide insurance and comprehensive breakdown cover.

This article was updated on 4 February 2026 for accuracy and clarification reasons.