New regulations concerning the Motability Scheme for claimants of Personal Independence Payment (PIP) and Disability Living Allowance (DLA) in Scotland have come into effect from 1 September. However, the Department for Work and Pensions (DWP) faces calls to reconsider these changes, which have been criticised for potentially impacting disabled people, particularly those in rural areas.
The Motability Scheme enables certain DWP benefit recipients to lease vehicles, providing crucial mobility support. Under the updated terms, the allowable mileage on a three-year lease has been reduced from 60,000 miles to 30,000 miles. Similarly, the mileage cap on a five-year lease for Wheelchair Accessible Vehicles (WAVs) has been lowered from 100,000 miles to 50,000 miles. These changes apply to all lease agreements made from 1 September 2024 onwards, while existing leases remain unaffected.
These adjustments follow the UK Labour government’s announcement in the 2025 Autumn Budget to impose Value Added Tax (VAT) and Insurance Premium Tax on Motability leases, resulting in increased costs for the scheme.
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Morven-May MacCallum MSP, representing the Highlands and Islands for the Scottish Liberal Democrats, has expressed strong concern over the changes, describing them as a “benefit cut” that disproportionately affects disabled individuals, especially those residing in rural communities who rely heavily on their vehicles for independence.
In response, Ms MacCallum has written to the Scottish Cabinet Secretary for Social Justice and Housing, seeking clarity on the evidence and considerations taken before the Scottish Government agreed to the reforms. She urges a review of the policy to better acknowledge the vital role this scheme plays in supporting the independence of disabled people across Scotland.
She stated: “These changes are effectively a benefit cut for disabled people in Scotland, and I am disappointed that the Scottish Government has allowed them to proceed instead of upholding its commitments to disabled people and rural communities. Disabled people in my region did not cause the increased costs of the scheme, and they should not bear the consequences because of where they live.”
The DWP has yet to comment on calls to revisit the recent changes to the Motability Scheme.