What Changes to the Motability Scheme Mean for Wheelchair Users

As part of the HM Treasury Budget, on 26th November 2025 Chancellor of the Exchequer Rachel Reeves announced a sweeping reform of the Motability Scheme.

Several changes have been applied to the way the Motability Scheme works, including:

• the removal of some premium brands of vehicle from the Motability scheme
• an aim to supply 50% ‘British-made’ vehicles on the Motability scheme by 2035
• changes to the implementation of VAT and Insurance Premium Tax (IPT) on Motability vehicles

Motability Operations Ltd have since confirmed these measures, communicating the changes via email to all customers of the Motability scheme. However, what has not been made explicitly clear is the direct impact to those most in need of the scheme – wheelchair users who depend on a permanently-adapted Wheelchair Accessible Vehicle (WAV) – a category making up less than 5% of the vehicle supplied on the scheme.

We’re taking a close look at these changes to see what they really mean for WAVs and the wheelchair users that depend on them.

Which premium brand vehicles have been removed from the scheme?

The biggest change to the Motability scheme announced as part of the 2025 budget is the removal of some premium brands from the Motability standard car price list. From the 25th November, unadapted cars from ‘luxury’ brands such as Alfa Romeo, Audi, BMW, Lexus and Mercedes-Benz will no longer be available on the Motability scheme.

Motability state that these changes have been made to ‘refocus’ the Motability scheme and ensure that Motability vehicles are “safe, reliable and affordable to run”.

Importantly for wheelchair users, these changes do not impact permanently-adapted Wheelchair Accessible Vehicles; meaning WAV users will still have access to a full range of brands when choosing their vehicle – including wheelchair-adapted conversions of comfortable vehicles such as the Mercedes-Benz V-Class and Vito Tourer.

What ‘British-made’ vehicles will be available as WAVs in 2035?

Motability’s commitment to ensure 50% of all vehicles leased are ‘British-made’ by 2035 “includes the 36,500 Wheelchair Accessible Vehicles (WAVs) on the Motability Scheme – built by UK-based converters – along with vehicles with adaptations made by British businesses.”

Whilst that doesn’t mean you won’t be able to lease a non-UK built WAV after this date – the other 50% of vehicles won’t be “British-made”, after all, it certainly means that UK convertors such as Brotherwood will continue to research the market for suitable British-made vehicles that can be adapted for the specialist needs of wheelchair users. Availability of such vehicles however, will depend on OEM manufacturers with factories in the UK producing base vehicles with the potential for conversion to WAV.

What do changes to VAT and IPT mean for WAVs?

Previously, all advance payments for vehicles supplied on the Motability scheme enjoyed both VAT and Insurance Premium Tax (IPT) exemption, reducing the cost of the top-up payment required to lease a more expensive vehicle on the scheme.

Following the 2025 budget, HMRC confirmed that these exemptions would be removed – potentially increasing the advance payment of some vehicles by several hundred pounds.

However, HMRC have also confirmed that both VAT and IPT exemptions will continue for “vehicles designed or substantially and permanently adapted for wheelchair or stretcher users” – meaning if you are leasing a WAV through the Motability scheme, your advance payment won’t be affected by the change.

So what will change for wheelchair users?

Although these changes seem extreme, the impact for those most in need of the scheme – wheelchair users who depend on a WAV for their mobility – won’t see an immediate change in their choice of vehicles, or the cost of leasing a WAV on the Motability scheme.

In the longer-term, you may see a wider choice of British-sourced accessible vehicles appearing on the Motability scheme – however this will be dependent on manufacturers providing suitable UK-made vehicles for WAV conversion.

So for WAV owners, whilst much has been made in the news of the changes to the Motability scheme, you’re unlikely to notice an immediate difference.