The Scottish Government has secured a series of concessions to planned changes to the Motability Scheme following discussions with Motability, while a Highlands MSP is calling on ministers to take further action to protect disabled people.
The changes, which will apply to new and renewing Accessible Vehicles and Equipment Scheme customers in Scotland from 1 September, follow the UK Government’s decision at the 2025 Autumn Budget to apply VAT and Insurance Premium Tax to Motability leases.
The Scottish Government said it had worked with Motability to introduce a number of exceptions designed to reduce the impact on disabled people, particularly those living in rural and island communities and those who rely on additional mileage for essential journeys.
Cabinet Secretary for Social Justice and Housing Shirley Anne Somerville said:
“The UK Government imposed a punitive tax change on the Motability scheme and we understand this has been a concerning time for disabled people.
“The Scottish Government has been working hard with Motability to bring in exceptions to some of the changes the UK Government’s decision led to, protecting people from large price hikes.
“As a result of this joint work, Motability will provide support to customers living in rural and island communities, as well as to customers who can demonstrate the need for increased mileage to allow for essential travel such as medical appointments, specialist education and employment.
“Importantly, this support will benefit disabled people right across the UK, not just in Scotland, and we are grateful to Motability for their cooperation.
“We will continue to press the UK Government to immediately reverse its decision and to follow our lead by standing up for disabled people.”
Under the revised arrangements, customers who know they will exceed the new annual inclusive mileage limit of 10,000 miles, or believe they may exceed it, will be able to apply for additional mileage support where more than 3,000 miles each year are required for essential journeys including medical appointments, specialist education and employment.
Motability has also introduced a postcode exception for customers living in very rural and island communities following engagement with the Scottish Government, with that support being available alongside any additional essential mileage allowance.
However, Highlands and Islands Liberal Democrat MSP Morven May MacCallum has called on the Scottish Government to review the agreement, arguing that the changes will still have a significant impact on disabled people across rural Scotland.
She has written to the Cabinet Secretary for Social Justice and Housing seeking further information about the decision and urging ministers to look again at the changes.
Commenting, Scottish Liberal Democrat Morven May MacCallum MSP said:
“These changes are effectively a benefit cut for disabled people in Scotland and I am disappointed to learn that the Scottish Government has agreed to let these changes go ahead instead of standing firm on their commitments to disabled people and rural communities.
“I have written to the Cabinet Secretary for Social Justice and Housing to better understand what information was used before these changes were agreed.
“I am ultimately calling on the Scottish Government to review this decision and find a more suitable way forward that adequately recognises the importance of this scheme to the independence of disabled people across the country.
“Disabled people in my region did not make the decision that drove up the cost of this scheme, and they should not be the ones to carry its consequences simply because of where they live.”
Under the new terms, mileage on a three year lease will reduce from 60,000 miles to 30,000 miles, while mileage on a five year Wheelchair Accessible Vehicle lease will fall from 100,000 miles to 50,000 miles for customers ordering from 1 September, with existing leases and those agreed or renewed before 31 August unaffected.
