The UK’s Motability Scheme, which supports around 860,000 disabled motorists, is undergoing significant changes after an overhaul announced by Labour and Chancellor Rachel Reeves.
The scheme allows eligible recipients to lease cars or mobility vehicles using their enhanced mobility allowance.
From December, a range of premium brands — including BMW, Mercedes-Benz, Audi, Lexus and Alfa Romeo — will no longer be available on the programme.
The government says the move is designed to refocus Motability on cost-effective mobility rather than subsidising luxury vehicles.
Reeves explained the shift during her Autumn Budget statement.
“The Motability Scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz,” Reeves said.
She added that reforms would reduce “generous taxpayer subsidies” and bring the scheme back to its original purpose.
Existing customers can still submit orders until 5pm on November 30 if they already have appointments booked.
In addition to the removal of luxury manufacturers, all coupé and convertible models will also be excluded.
The government said the restrictions aim to ensure the scheme prioritises value, practicality and accessibility.
A new pledge also commits the programme to increase the number of British-made vehicles.
From 2035, at least half of all vehicles leased through Motability must be manufactured in the UK.
Motability Operations will collaborate with domestic car makers to support the policy.
Chief Executive Andrew Miller said the scheme remains “a lifeline to freedom and independence.”
He added that the organisation’s commitment to British manufacturing would help “put British car manufacturing into top gear.”
British-built Nissan models are expected to see a significant rise in demand as a result of the changes, with volumes forecast to double to around 40,000 vehicles.
Nissan GB Managing Director James Taylor welcomed the announcement.
He said the company “recognises the crucial role the Motability Scheme plays” and looks forward to expanding its partnership.
Manufacturers affected by the cuts include BMW 1 Series, BMW X1, BMW i4, Mercedes-Benz GLA, Mercedes-Benz EQA, several Audi models and others.
The changes represent one of the scheme’s largest restructurings in recent years and reflect broader pressures on public finances.
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