Officials are investigating people driving the cars while not on the insurance and also the vehicles not being used to help the disabled person
04:59, 11 Dec 2025Updated 08:34, 12 Dec 2025
Motability has created an investigations unit to crack down on misuse of vehicles intended to help the disabled(Image: Getty Images)
A new ‘Special Investigations Unit’ is being set up by the operators of Motability to take cars away from people who are misusing them. The move follows after the number of cars available in the scheme was restricted by Labour with a number of luxury brands like BMW and Mercedes being removed.
This week the House of Commons, Minister of State (Department for Work and Pensions) Sir Stephen Timms said that next July some ‘tax reliefs’ will be removed. The Government has confirmed that VAT will apply to Advance Payments and Insurance Premium Tax will apply to Scheme leases which will take effect from July 2026.
Motability has said that the change will increase the cost of a lease on the Scheme and ‘we anticipate the average Advance Payment (upfront cost) of a vehicle, will increase by around £400 over the three-year package’. As part of its response to the Budget, which removed the VAT concessions, Motability also announced a crackdown.
This followed criticism of the misuse of the Blue Badge scheme. In October, Cabinet Office Minister Josh Simons voiced his dismay at uncovering an unlawful underground market for Blue Badges, which he characterised as representing “old-fashioned courtesy and consideration”.
A government investigation resulted in the withdrawal of tens of thousands of Blue Badges, initially granted to people who had died, after it emerged they were being traded for considerable amounts. Now Motability has said that 80 investigators have been appointed to stop the cars being misused.
Motability said: “To more strongly combat the issue of misuse, the Motability Scheme is creating a new Special Investigations Unit. While the overall rate of misuse has remained stable, and the vast majority of customers use their vehicles in the way they are intended, the growth in customer numbers means more cases are being investigated
“There are now around 80 people who are dedicated to tackling misuse of Scheme vehicles who join the newly formed Unit. Motability Operations also plans to strengthen data-sharing arrangements with government and police agencies to enable quicker, more effective action where misuse is identified.”
Motability misuse
Motability describes misuse as actions that breach the agreed terms and conditions of the Motability Scheme, which gives disabled people access to vehicles and gives examples of misuse:
- Not using the vehicle for the disabled person’s benefit. It needs to primarily serve the needs of the disabled person. You cannot use it for other purposes
- Driving while not named on the Direct Line Motability policy of insurance, or while banned or disqualified from driving
- Using the car in illegal or criminal activities
- Lending, sub-leasing, or selling the vehicle. This includes using it for business reasons we haven’t agreed with you, like as a taxi or for deliveries
- Not taking good care of the vehicle
The Government has confirmed that VAT will apply to Advance Payments and Insurance Premium Tax will apply to Scheme leases which will take effect from July 2026.
Motability has said that the change will increase the cost of a lease on the Scheme and ‘we anticipate the average Advance Payment (upfront cost) of a vehicle, will increase by around £400 over the three-year package’. Asked by Labour’s Shaun Davies what steps he is taking to improve the scheme, Sir Stephen said: “Changes announced at the Budget will improve value for money for taxpayers while ensuring that the Motability scheme continues to provide outstanding support for disabled people.”
Mr Davies said it was crucial for the lives of many: “The Motability scheme stems from the vital principle that people with disabilities should be able to live a dignified and independent life. I have heard from several constituents about how accessible cars can help them into work and healthcare, which I welcome, but I have also heard from a number of others about those with questionable conditions being provided with cars that, quite simply, the average working family could not afford.”
Sir Stephen replied: “I do agree with my hon. Friend, and I would be happy to meet him. Motability is an important scheme that does an important job. Some tax reliefs will be removed in July. Existing leases will not be affected, and neither will wheelchair-adapted vehicles. There will still be vehicles, with no up-front payment, that are affordable solely through the mobility component of personal independence payment, so the scheme will continue to do a great job but will give better value for money for taxpayers.”
Speaking about the changes in the November budget Motability has said: “The tax changes will increase the cost of a lease on the Scheme and we anticipate the average Advance Payment (upfront cost) of a vehicle, will increase by around £400 over the three-year package. We will continue to provide a range of around 40 to 50 vehicles available to lease with no upfront payment.
“Changes to the Scheme’s package are expected to be introduced from July 2026. Motability Operations, which runs the Scheme, will begin engaging with customers about the proposed changes in spring 2026. Proposed changes to the leasing package will undergo disability impact assessment by the Motability Foundation, which oversees the Scheme, before any changes are approved, announced and implemented. As the Scheme evolves and we fully understand the impacts changes may have on disabled people, the Foundation will also need to consider how its grant programmes best support those most in need.”
To watch the debate click here. For more information on Motability misuse, click here.