Proposed UK VAT change on Motability cars could raise costs by £3,000–£6,500, alarming disabled users and advocates.

A proposed change to apply VAT to vehicles under the UK’s Motability Scheme could add £3,000 to £6,500 in upfront costs for disabled individuals, according to Motability Operations, sparking concern among users and advocates. The scheme, which allows disabled people to lease cars using mobility benefits, currently benefits from VAT relief, making it affordable for low-income recipients. While no official decision has been made, speculation that Chancellor Rachel Reeves may eliminate the tax break in the upcoming Autumn Budget has raised alarms. Critics warn the move would undermine independence for users who rely on the program for medical appointments and daily mobility, especially given limited public transport options and high adaptation costs. Motability confirms the scheme remains unchanged for existing leaseholders, with no immediate plans to alter the program.