Motability Axes BMW & Mercedes from Scheme Amid Government Pressure: ‘Fairness Over Luxury’ in Major Fleet Overhaul
Disability benefit claimants will no longer be able to lease BMW or Mercedes vehicles through the taxpayer supported Motability scheme, after ministers warned it was becoming unfair to working families who cannot afford similar cars.
Motability confirmed that the luxury brands would be withdrawn from its line up immediately, as part of a wider overhaul designed to prioritise vehicles that meet disabled people’s needs and offer clear value for money.
The shift means that claimants currently driving BMW or Mercedes cars may have to switch to different manufacturers when they next renew their lease.
BMW and Mercedes respond as models removed
Mercedes declined to comment on the change. BMW said the move would be disappointing for the many BMW customers who rely on the scheme.
A BMW spokesperson said the company would work with Motability to ensure prompt delivery of any existing orders. Mini, which is owned by BMW, is not affected.
Chancellor Rachel Reeves had previously raised concerns that the scheme was offering claimants a premium motoring experience that is out of reach for most working households. Officials said the latest changes are intended to keep the scheme financially sustainable and maintain public confidence in how it operates.
Record spending and scrutiny over eligibility
Motability allows disabled people who receive the enhanced rate of the mobility component of Personal Independence Payment to use that money to lease a vehicle at relatively low cost. Insurance, servicing, breakdown cover and maintenance are included.
However, the scheme has faced increased pressure after a record £2.8 billion of taxpayer funding was spent last year, driven by a rise in PIP claims. There have also been concerns about fraudulent claims, after it emerged that thousands of people overstated illnesses to access vehicles.
Most cars priced up to £27,000 can be obtained with no advance payment. More expensive models require an upfront fee that can range from £95 to £7,500. A BMW 3 Series, for example, starts at almost £42,000.
Motability has also faced scrutiny for allowing eligibility through a broad range of conditions, including ADHD, autism and anxiety. Applicants must demonstrate that these conditions genuinely affect mobility.
Read More: Vegas Shockwave: Norris & Piastri Stripped of Podium
Government says scheme remains vital
Ministers maintain that Motability remains a lifeline for disabled people who rely on accessible and reliable transport. They have also highlighted its role in supporting the British car industry.
Motability is now the United Kingdom’s largest fleet operator, leasing around 815,000 vehicles. The organisation aims for half of these to be British built by 2035.
Andrew Miller, chief executive of Motability, said the scheme provides daily independence and freedom for disabled people. He added that Motability would continue to support the wider economy through its partnerships with government and manufacturers.
Chancellor Rachel Reeves said supporting British car production is central to the government’s Modern Industrial Strategy. She said growth in the sector would help reduce national debt, cut NHS waiting lists and ease the cost of living.
