New Motability update from April 1, for disability benefit claimants

People using a popular scheme will see changes within days. Hundreds of thousands of people are currently using the Motability Scheme which leases cars and other transport aids to people on certain disability benefits.

And next week there will be a change to the scheme’s offering as part of its regular three-monthly updates, with an announcement due on April 1, 2026, which will give new prices and vehicles for those joining or using the scheme. The most up-to-date figures from Motability Operations, which operates the Motability Scheme, show there are currently 815,000 customers throughout Great Britain, including approximately 80,000 in Scotland who use the Accessible Vehicles and Equipment Scheme.

Both programmes are the same and run by Motability Operations, however they have different titles depending on where you live. The scheme allows people receiving a disability benefit, with a higher or enhanced rate of the mobility component, to use some or all of the payment to lease a new car or other specific mobility equipment.

The Spring catalogue covering leasing arrangements is de to be released on the Motability Scheme website on April 1. The pricing catalogue changes every three months with the current price list going live on January 1 and continuing until March 31.

People using the Motability Scheme do not receive a “free car” but uses their mobility benefit to help cover it, reports the Daily Record. The Motability Scheme helps people with mobility problem by leasing them a car, wheelchair accessible vehicle, scooter or powered wheelchair.

Those eligible can use all or some of their enhanced mobility award from a qualifying disability benefit such as Personal Independence Payment ( PIP ), Adult Disability Payment (ADP), Disability Living Allowance (DLA), Scottish Adult DLA, War Pensioners’ Mobility Supplement (WPMS) and Armed Forces Independence Payment (AFIP).

A full list of qualifying benefits and necessary award levels is available on the Motability website. In addition to a new car, customers also receive insurance, breakdown assistance, servicing, maintenance, tyres and windscreen repairs as part of the deal.

What does the lease include?

Eligible applicants will receive a new vehicle, and a complete package which includes:

• Insurance
• Servicing and maintenance
• Full RAC breakdown assistance
• Yearly tax
• Three drivers – you can change these whenever you like
• Kwik Fit replacement tyres
• Windscreen repair or replacement
• 60,000 mileage allowance over three years, or 100,000 for WAVWheelchair Accessible Vehicles
• Many adaptations at no extra cost

Full details on the Motability Scheme can be found on its website.

In the November Budget, Chancellor Rachel Reeves announced changes to tax exemptions for the Scheme. These will come into effect this summer. This will mean increased costs and as a result Motability has said it will reassess how the Scheme operates to help keep it as affordable as possible for customers.

However, it confirmed it will continue to offer the best possible leasing package for disabled people, with a variety of suitable vehicles to cater to their needs. Existing leases will not be impacted by any changes which take effect on July 1, 2026.

Full details about the Motability Scheme can be found on its website. For further information about Adult Disability Payment and leasing an accessible vehicle in Scotland, go to the mygov.scot website.