This page is your guide to everything you need to know about changes to the Scheme from 1 July 2026 as a result of the Government tax changes announced in the Autumn Budget.
We’ll continue to update this page as more information becomes available.
Last updated: 18 February 2026
In the Autumn Budget, the Government announced tax changes which will increase the cost of running the Motability Scheme.
From 1 July 2026 VAT and Insurance Premium Tax (IPT) will apply to certain leases.
This means it will cost more to deliver the Scheme unless we make some changes.
Hear a quick explainer from our CEO Andrew Miller about what these tax changes are and how they will impact the Scheme.
Andrew Miller - CEO
We’re currently looking at what we include in the Scheme and how we manage costs to help us keep the Scheme affordable and sustainable.
Our priority is protecting our core package, including insurance, servicing, maintenance and breakdown cover, while keeping prices fair.
Together with the Motability Foundation we’re looking closely at how any change could affect customers. And right now, we’re speaking to customers to understand what’s important and essential.
Andrew Miller - CEO
Nothing is changing right now. If you order a new vehicle before 1 July 2026 you’ll get the current lease terms and conditions and our ‘price freeze’ which means the price at the time you apply is locked, even if it changes before you receive your vehicle.
We might make a few updates before July to help us reduce costs or work more efficiently. These will not change your lease terms or our all-inclusive package.
We know how important the Motability Scheme is to your independence. Whether it is getting to work, seeing family, or getting out and about, these journeys matter. We remain committed to:
We’ll update this page as soon as new information becomes available.
When we make changes, we’ll show the date of the latest update at the top of the page so you can easily see what’s new.
Our priority is protecting our core package, including servicing, insurance, maintenance and breakdown cover, while keeping prices fair for customers.
We’re making sure that the Scheme remains sustainable and affordable, so that we can continue to support customers’ mobility needs long into the future.
