Luxury Cars Set to be Axed from Mobility Scheme

Posted on 26th November 2025

Luxury Cars Set to be Axed from Mobility Scheme

Top premium car brands such as BMW and Mercedes-Benz will be scrapped from the programme within days as part of a major overhaul of the system by Labour and Rachel Reeves in the Autumn Budget. The Motability Scheme is used by around 860,000 people in the UK and offers a lifeline for disabled motorists.

Individuals can lease cars, wheelchair accessible vehicles, scooters and wheelchairs in exchange for their enhanced mobility allowance. The programme is said to improve freedom and independence for disabled motorists, but the Government has embarked on radical changes. From December, motorists will no longer be able to access Alfa Romeo, Audi, BMW, Lexus and Mercedes-Benz cars as part of the scheme.

As part of a major shake-up, all coupé and convertible models are also no longer eligible to be selected. Motorists will be unable to place orders for cars leaving the scheme from December 1. However, orders can be submitted up until 5pm on Sunday November 30 if customers are already booked in for a Motability appointment.

Full list of cars leaving the Motability Scheme:

Chancellor Rachel Reeves confirmed changes to the Motabiltity Scheme in her Autumn Budget on Wednesday, revealing major changes were needed.

Speaking in the House of Commons, Ms Reeves said: “The Motability Scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz. So I am making reforms which will reduce generous taxpayer subsidies and Motabilty has confirmed they will remove luxury vehicles from their scheme, getting the scheme back to its original purpose of offering cost effective leases to disabled people.”

Instead, a new commitment will mean that at least half of all vehicles leased through the Scheme every year will be British-built from 2035. Motability Operations is set to work closely with UK-based manufacturers to increase the share of British-built vehicles leased by customers.

Andrew Miller, Chief Executive of Motability Operations, said: “The Motability Scheme makes a difference to disabled people’s lives every day and our customers tell us it is a lifeline to freedom and independence. Working with government and the automotive sector, we want to do even more to support the economy and our ambitious commitment should put British car manufacturing into top gear.”

Some manufacturers could be set to benefit from the idea, with the number of British-built Nissan vehicles is set to double, increasing to around 40,000 models. The news has been welcomed by the Japanese manufacturer, who have thrown their weight behind the changes.

James Taylor, Managing Director of Nissan GB, said: “Nissan welcomes Motability’s commitment to buy British-built cars and its support for UK manufacturing.

“As a long-standing partner, we recognise the crucial role the Motability Scheme plays in helping disabled people remain mobile and independent. We look forward to working with Motability to deliver its ambitious goals.”