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Motability rule changes launching within weeks will have huge impact on thousands of drivers

Changes are coming to the Motability Scheme in Scotland within weeks that could have a huge impact on motorists using the service.

From September 1, 2026, changes to the Motability Scheme in Scotland will be introduced, concerning customer leases who receive their allowance from Social Security Scotland.

 

Motability explained that the new changes were being introduced following changes announced by former Chancellor Rachel Reeves in the 2025 Autumn Budget.

She confirmed that reforms to tax breaks available to Motability and other schemes would be introduced in a bid to raise over £1billion over the next five years.

The changes were introduced in England, Northern Ireland and Wales on July 1, but will take effect in Scotland from September 1.

This is being done because the Motability Scheme operates under a separate agreement in Scotland, namely the Accessible Vehicles and Equipment Scheme (AVES).

Anyone who receives their allowance from Social Security Scotland was contacted last month to explain how the national changes would not yet apply to them.

Discussions between the Motability Scheme and the Scottish Government have now concluded, with certain changes now confirmed to be taking effect from Tuesday, September 1, 2026.