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Scottish Government calls out DWP for attacks on Motability

Rachel Charlton-Dailey by Rachel Charlton-Dailey
10 November 2025
in Analysis
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The Department for Work and Pensions (DWP) are finally facing some resistance to the rumoured changes to the Motability scheme. Disabled communities have already raised the alarm about the prospect of the DWP gutting the Motability scheme that allows disabled and chronically ill people to transport ourselves around. And, with chancellor Rachel Reeves’ budget allegedly coming up, concerns have grown that she’ll make cuts to the scheme. Thankfully, someone in government is standing up for us.

The Scottish government’s Social Justice Secretary Shirley-Anne Somerville has written to DWP chief Pat McFadden, urging him to abandon the reported plans to impose VAT and insurance tax on Motability cars.

DWP sucking up to the right will cost disabled people an extra 3 grand

Vehicles leased under the Motability scheme are currently exempt from VAT, in order to make the cars more affordable to those who need them most. However, after months of rampant hate against disabled people, especially those who get motability cars, it appears the Chancellor is attempting to appease the worst in society who think everyone with acne gets a free car.

As reported by John Pring on Disability News Service, if this change came in, disabled people would be charged an extra £3,000, even on cheaper cars. This would be on top of them losing their mobility component of Personal Independence Payments (PIP), as that goes to Motability for the monthly lease. This would make the scheme, which is supposed to provide disabled people with an affordable way of getting around, instantly unaffordable and severely limit tens of thousands of disabled people’s independence.

Scotland left out again

In Scotland, they have their own scheme, the Accessible Vehicle and Equipment (AVE) Scheme. However, it is still provided by Motability. It’s therefore understandable that Somerville expressed her anger that the Scottish Government was not consulted or made aware of these changes before they were leaked to the press.

In the letter, which was also sent to Chancellor Rachel Reeves and Chief Secretary to the Treasury James Murray, Somerville said:

I am deeply concerned about the content of these proposals, and I am disappointed that we have not been consulted on these proposed changes for clients in Scotland.

She continued”

Whilst the AVE Scheme is devolved, the tax arrangements are not and it is concerning that that the Scottish Government has not been consulted.

Somerville warned that the change could significantly increase vehicle costs for nearly 88,000 disabled people and carers in Scotland alone.

Fear and uncertainty – not that Labour cares

The Scottish minister also warned of the fear this will cause for disabled people, she said:

These proposals will cause significant fear and uncertainty for disabled people who rely on the Scheme to remain mobile and affordably lease a vehicle with no credit checks.

Should the changes to the VAT arrangements be implemented by the UK Government, Motability has indicated that the advance payments for vehicles could increase significantly for disabled people at a time when household budgets are already under significant pressure.

Somerville urged McFadden to ensure that disabled people’s well-being and safety are put first:

I would welcome your urgent reassurance that HM Treasury will undertake a meaningful Equality Impact Assessment to assess the financial, well-being and health impact of any changes to disabled people, along with a commitment to publish that assessment.

She also requests that the Scottish government be consulted too:

I would also welcome your reassurance that your officials will engage with Scottish Government counterparts on the potential impacts of any proposals.

Scotland sick of cleaning up Westminster’s mess

She closes the letter by “strongly urging” McFadden to abandon proposals to ensure disabled people can access support, and gives McFadden a timely wake-up call that the Scottish government shouldn’t be cleaning up Westminster’s mess:

 I would strongly urge you to abandon these proposals and ensure that disabled people can access the support that meets their needs. If the UK Government does not, then disabled people can conclude, that the UK Government remains content to balance the books at their expense.

The Scottish Government already uses its limited budget to invest around £1.4 billion mitigating the impact of 15 years of UK Government welfare policies, and this includes future mitigation of the two-child limit.

However, it is not the responsibility — nor is it realistic — for the Scottish Government to mitigate all the UK Government’s most damaging policies.”

Somerville is 100% correct in everything she says to McFadden in her open letter. It’s absolutely disgraceful that the UK government are bowing to pressure to change Motability, when they should be protecting disabled people. But we all know this budget is about saving money or saving lives.

And, this Labour government has shown time and time again that it’ll choose money over people every time.

Featured image via the Canary

Tags: chronic illnessDepartment for Work and Pensions (DWP)disability
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