TL;DR
The Motability Scheme lets eligible disabled people lease a car, wheelchair-accessible vehicle, scooter or powered wheelchair using their mobility benefit. To join with Personal Independence Payment you must receive the enhanced rate of the mobility component and have at least 12 months left on your award. The enhanced PIP mobility rate is around £80 a week for 2026/27 and is paid directly to Motability for the lease, which usually includes insurance, servicing and breakdown cover. Several cost changes take effect from July 2026.
Last reviewed 30 June 2026
What the Motability Scheme is
The Motability Scheme lets eligible disabled people exchange their mobility benefit for the lease of a car, a wheelchair-accessible vehicle, a mobility scooter or a powered wheelchair. Instead of receiving the mobility part of your benefit as cash, it is paid directly to Motability Operations to cover the lease. The scheme is run by Motability Operations under the oversight of the Motability charity, and vehicles are supplied brand new.
Who qualifies through PIP
To join the scheme using Personal Independence Payment, you must receive the enhanced rate of the mobility component. The standard rate of the mobility component and the daily living component do not qualify. You also need at least 12 months remaining on your award. Other qualifying benefits include the higher rate mobility component of Disability Living Allowance, the enhanced rate mobility component of Adult Disability Payment in Scotland, Armed Forces Independence Payment, and the War Pensioners' Mobility Supplement.
How the cost works
The enhanced PIP mobility rate is around £80 a week for 2026/27, and this amount is paid directly to Motability toward the lease. For many standard vehicles the mobility payment covers the whole cost. For more expensive or higher-specification vehicles, you may need to pay a one-off advance payment on top. Where a vehicle costs less than your full allowance, the difference can be arranged so that some money comes back to you.
What the lease includes
A Motability lease typically bundles together insurance, servicing, maintenance, breakdown cover and tyres, which makes budgeting simpler than owning a car outright. Cars are usually leased for around three years, while wheelchair-accessible vehicles, scooters and powered wheelchairs are usually leased for around five years. If you choose an electric car, a home chargepoint can often be arranged where you are eligible.
The changes coming in July 2026
Following the 2025 Budget, several changes take effect from July 2026 for new leases. VAT of 20 percent is being added to advance payments on some vehicles, so the upfront cost of choosing a pricier car rises. The standard mileage allowance is being reduced, and the charge for excess mileage is increasing. In addition, from April 2026 new customers are required to have a telematics device fitted, and some premium models have been removed from the range. Wheelchair-accessible and heavily adapted vehicles are protected from the tax changes.
Existing leases and losing your award
Existing leases are generally protected and do not change because of the new rules until you come to renew. If your PIP mobility award is reduced at a review so that you no longer receive the enhanced rate, your eligibility for the scheme can be affected, although arrangements to give customers more time before returning a vehicle have been improved. If your award changes, contact Motability to understand your options.
How to apply and the rules on use
Once you have a qualifying award, you apply through a Motability dealer, who can confirm your eligibility and help you choose a vehicle. The car does not have to be driven only by you: named drivers can drive it, provided journeys are for the benefit of the disabled person. Misusing the vehicle, such as using it for business without permission or letting people who are not named drivers use it, is taken seriously and can end the lease.
Related guides
Disclaimer: This article is general information and not financial advice. Scheme rules, benefit rates and lease terms are set by the DWP and Motability and can change. Check the current rules with Motability and GOV.UK, or a free adviser such as Citizens Advice. See the sources below.
Frequently asked questions
What PIP rate do I need for Motability?
You need the enhanced rate of the mobility component of PIP, with at least 12 months remaining on your award. The standard mobility rate and the daily living component do not qualify.
How much does a Motability car cost?
The enhanced PIP mobility rate, around £80 a week for 2026/27, is paid to Motability toward the lease. For pricier vehicles you may pay a one-off advance payment on top.
What is included in a Motability lease?
Usually insurance, servicing, maintenance, breakdown cover and tyres, with cars leased for around three years and WAVs, scooters and wheelchairs for around five.
What is changing in July 2026?
VAT is being added to advance payments on some vehicles, the mileage allowance is being reduced and excess mileage charges increased, telematics devices are required for new customers, and some premium models have been removed. Adapted vehicles are protected.
What happens to my lease if I lose my PIP award?
Existing leases are generally protected until renewal, but a reduced award can affect eligibility. Contact Motability to understand your options if your award changes.
