Motability: Insurance Premium Tax
The question
To ask the Secretary of State for Work and Pensions, how much new leases for Motability vehicles without advance payments will increase in end user cost from July 2026 as a result of the addition of insurance premium tax in the Autumn Budget 2026.
Answered by Sir Stephen Timms
We are protecting the taxpayer through changes to the Motability scheme, ensuring it supports disabled people whilst delivering efficient use of taxpayers’ money.
As is the case now, Motability will determine which vehicles will require an advanced payment and the price. There will still be cars available through the scheme which require no advance payment. This means that customers will still be able to lease a car just with their qualifying disability benefit.
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