To: UK Government

Don’t price disabled people out of independence

Photo by Jakub Pabis on Unsplash
Stop the Motability VAT and insurance tax changes

Why is this important?

Don’t price disabled people out of independence
Stop the Motability VAT and insurance tax changes

From 1 July 2026, the Government plans to change tax reliefs on Motability and other disabled vehicle leasing schemes. This could mean extra VAT on advance payments and Insurance Premium Tax on new leases.

For many disabled people, a suitable vehicle is not a luxury. It is the difference between independence and isolation.

Disabled people use Motability vehicles to get to medical appointments, work, shops, family, care, community life and everyday essentials. Many of us cannot rely on public transport because it is inaccessible, unreliable, painful, exhausting, unsafe, or simply not available where we live.

The Government says protections will remain for vehicles designed or substantially adapted for wheelchair or stretcher users. But disability is wider than that.

Many disabled people need a particular vehicle because of arthritis, chronic pain, fatigue, autism, PTSD, neurological conditions, falls risk, carers, medical equipment, seating position, vehicle height, boot space, automatic transmission, or inability to use public transport.

This change risks creating a two-tier system: people with the most visibly adapted vehicles may still be protected, while other disabled people with serious mobility needs face higher costs.

If the Government’s concern is luxury vehicles, then it should target luxury vehicles. It should not increase the cost of ordinary disabled transport for people who need a suitable car to live independently.

This is also an equality issue. Before making changes that affect disabled people’s access to transport, the Government should publish the full Equality Act assessment, the modelling of how many disabled people may be affected, and the reasons why a targeted luxury-vehicle policy was not chosen instead.

Disabled people are already facing rising care costs, energy costs, housing adaptation problems, inaccessible transport, and pressure on disability support. Adding extra costs to disabled vehicles risks pushing more people into isolation, dependency and crisis.

We are asking the Chancellor and HM Treasury to:

  1. Pause the Motability VAT and Insurance Premium Tax changes.

  2. Publish the full Equality Act / Public Sector Equality Duty assessment.

  3. Publish modelling showing how many disabled people may pay more, trade down to unsuitable vehicles, delay replacement, or leave the scheme.

  4. Protect disabled people who need suitable vehicles for disability reasons, not only wheelchair or stretcher users.

  5. Use targeted luxury-vehicle rules if that is the concern, rather than broad tax changes that risk harming disabled people.

  6. Review the policy with disabled people, disability organisations and Motability users before it takes effect.

Disabled people should not be priced out of independence.





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