DWP responds to backlash over Motability scheme changes

The petition, created by Dave Walton, has already attracted more than 59,000 signatures and argues that new charges and lower mileage allowances will unfairly hit disabled people who rely on Motability vehicles every day.

Now the Department for Work and Pensions has officially responded, defending the reforms and insisting the scheme will remain accessible.

The petition can be found here.

What changes are being made to Motability?

Under changes announced alongside the Budget, disabled drivers taking out new Motability leases will face:

• VAT relief being removed from Advance Payments on some vehicles
• Insurance Premium Tax (IPT) being added to leases
• A reduced annual mileage allowance of 10,000 miles for new leases from July 1, 2026

The changes will only affect new leases and will not apply to wheelchair accessible vehicles.

The Motability Scheme currently allows eligible disabled people to exchange part of their disability benefits for a leased vehicle, scooter or powered wheelchair.

Why are people angry?

Campaigners say the changes could leave many disabled people unable to afford suitable vehicles.

The petition argues that disabled people often rely on cars for short but essential trips that quickly add up in mileage, especially in rural areas where public transport options are limited.

It warns that extra costs linked to taxes and mileage restrictions could reduce independence for some of the country’s most vulnerable people.

The petition states: “Many disabled people earn considerably less than average and a cost increase could mean they struggle to get a car.”

DWP Says Reforms Are About ‘Fairness to Taxpayers’

In its official response, the DWP said the Government and Motability had worked together to develop reforms that balance support for disabled people with “fairness to the taxpayer”.

The department said the changes are expected to save more than £1 billion by the 2030/31 financial year.

It also stressed that:

• Eligibility for disability benefits will not change
• Eligibility for the Motability Scheme will remain the same
• Insurance, servicing, maintenance and breakdown cover will still be included

The Government added that most current customers drive fewer than 10,000 miles annually.

The DWP said: “The Government and Motability have worked in partnership to develop a suite of reforms which strikes the right balance between delivering a key service for disabled people and fairness to the taxpayer, saving over £1 billion by financial year 2030/31.

“These reforms will not affect eligibility for the Motability Scheme or disability benefits.

“The VAT relief for Advanced Payments – a one-off payment made to lease more expensive vehicles – will be removed and Insurance Premium Tax (IPT) will apply to leases at the standard rate, bringing tax treatment in line with commercial leasing firms.

“These changes will only apply to customers taking out new leases with Motability and will not apply to current leases or to wheelchair accessible vehicles in recognition of the additional costs associated with these vehicles. VAT reliefs on weekly lease costs and vehicle resale will remain in place.”

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Motability said it plans to introduce an exceptions process for people who need to travel further because of their circumstances.

The petition remains open until July 15, 2026 and could still trigger a debate in Parliament if it reaches 100,000 signatures.

Meanwhile, disabled drivers and campaigners continue to raise concerns over whether the changes will disproportionately affect those who rely most heavily on their vehicles for day-to-day life.

What do you think of the changes? Tell us in the comments below.