New Motability rules are being introduced for thousands of people in the coming days in a move that could see them lose some entitlements.
From September 1, 2026, changes will be introduced to the Motability Scheme for customers who receive their allowance from Social Security Scotland.
These changes were previously unveiled in the rest of the UK in July, but have been delayed in Scotland under a separate agreement – the Accessible Vehicles and Equipment Scheme (AVES).
Former Chancellor Rachel Reeves announced in the 2025 Autumn Budget that Motability changes would be introduced to raise over £1billion over the next five years.
The Labour MP for Leeds West and Pudsey said VAT relief for top-up payments to lease more expensive vehicles would be removed.
Similarly, drivers who get a new Motability lease would be required to pay Insurance Premium Tax at the standard rate.
Following discussions with the Scottish Government, the Motability changes have now been confirmed for drivers across the country.
GB News has compiled the key lease rule changes to the Motability Scheme launching in Scotland over the coming days.
Significant changes are coming to the Motability Scheme in Scotland in September
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MOTABILITYThe current lease package for orders placed before September 1, 2026
For a three-year lease:
- 60,000 miles
- Up to eight tyre replacements
- 5p excess mileage fee (plus standard rate VAT)
- No VE103 admin fee to take your car abroad
For a five-year Wheelchair Accessible Vehicle (WAV) lease:
- 100,000 miles
- Up to 10 tyre replacements
- 5p excess mileage fee (plus standard rate VAT)
- No VE103 admin fee to take your car abroad
Motability changes were confirmed by former Chancellor Rachel Reeves in last year’s Budget
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MOTABILITYThe new lease package for orders placed on or after September 1, 2026
For a three-year lease:
- 30,000 miles
- Up to six tyre replacements, including up to four for damage
- 25p excess mileage fee (including standard rate VAT)
- A £22 VE103 admin fee to take your car abroad to the EU
For a five-year Wheelchair Accessible Vehicle (WAV) lease:
- 50,000 miles
- Up to 10 tyre replacements, including up to six for damage
- 25p excess mileage fee (including standard rate VAT, unless VAT relief applies to you)
- A £22 VE103 admin fee to take your WAV abroad to the EU
Significant changes to the Motability Scheme were introduced on July 1 outside of Scotland | MOTABILITY
These changes will not affect existing leases, with the new terms applying to any orders placed on or after September 1, 2026.
Motability acknowledged that the new mileage allowances for both three-year and five-year leases would be “one of the biggest adjustments”.
It stated: “If you need to travel much more than your standard mileage allowance because of these journeys, you may be able to get help with the cost of your extra miles.”
Social Security Scotland issues allowances for the Scottish Adult Disability Living Allowance (SADLA), Adult Disability Payment (ADP) and Child Disability Payment (CDP).