Concerns over the Motability Scheme have intensified after MPs called for Chinese-made vehicles to be removed from the programme, while the Department for Work and Pensions (DWP) has defended separate changes affecting new leases. The developments have prompted debate about both the future of the scheme and its impact on disabled drivers.
The Motability Scheme allows eligible recipients of Personal Independence Payment (PIP) and Disability Living Allowance (DLA) to exchange part of their benefits for a leased vehicle, scooter or powered wheelchair. Recent discussions have focused on the range of vehicles available through the scheme and on reforms announced alongside the Budget.
According to reports cited by The Telegraph, some MPs are urging Motability to stop offering vehicles produced by Chinese manufacturers. At the same time, thousands of disabled motorists have backed a petition opposing changes that will introduce new costs and a lower mileage allowance for future leaseholders.
MPs Call for Removal of Chinese-Made Vehicles from the Scheme
A group of MPs has raised concerns about the inclusion of Chinese automotive brands within the Motability Scheme. According to The Telegraph, 12 Chinese-manufactured vehicles are currently available through the programme.
The models listed include the BYD Sealion 5, Chery Tiggo 7, Chery Tiggo 8, Geely EX5, Geely Starray, Jaecoo 5, Jaecoo 7, Leapmotor B10, Leapmotor C10, Leapmotor T03, Omoda 5 and Omoda 7.
Former Conservative Party leader Sir Iain Duncan Smith said Motability should “make an effort” to support the British motor industry by excluding Chinese vehicles. He warned that continued expansion by Chinese manufacturers in the UK market could have consequences for domestic car production.
Alicia Kearns, Conservative MP for Rutland and Stamford, also confirmed that MPs intended to raise their concerns directly with Motability. She said the scheme “should not become a backdoor subsidy for Chinese state-backed manufacturers looking to flood our market”.
Motability Operations rejected suggestions that the scheme was favouring particular manufacturers. According to comments reported by The Telegraph, the organisation said the vehicles available through the scheme reflect those accessible to UK motorists generally, excluding premium brands, while providing a range of options suited to disabled customers.
The organisation also pointed to plans aimed at increasing the number of British-built vehicles available through the programme, including a commitment to double the number of Sunderland-built Nissan models on the scheme by 2030.
DWP Defends Motability Reforms amid Growing Petition
Alongside the debate over vehicle manufacturers, the DWP has responded to criticism of planned changes affecting new Motability leases.
According to reports, a petition created by Dave Walton has attracted more than 59,000 signatures. Campaigners argue that additional charges and a reduced annual mileage allowance could make it harder for disabled people to maintain their independence.
The changes will apply to new leases and include the removal of VAT relief on some Advance Payments, the addition of Insurance Premium Tax to leases, and a reduction in the annual mileage allowance to 10,000 miles from 1 July 2026. Wheelchair accessible vehicles will be exempt from these measures.
In its official response, the DWP said the reforms were developed jointly with Motability and were intended to balance support for disabled people with “fairness to the taxpayer”. The department stated that eligibility for disability benefits and for the Motability Scheme would remain unchanged.
The DWP also noted that insurance, servicing, maintenance and breakdown cover would continue to be included, while Motability has said it intends to introduce an exceptions process for customers whose circumstances require greater travel. The petition remains open until 15 July 2026 and could trigger a parliamentary debate if it reaches 100,000 signatures.
