Written Question·Department for Work and Pensions·UIN 95510

Motability: Insurance Premium Tax

Tabled: 28 November 2025
Answered: 8 December 2025

Question

Neil Duncan-Jordan

LabourPoole

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of applying Insurance Premium Tax to certain vehicles under the Motability Scheme from 1 July 2026 to levels of (a) poverty and (b) financial hardship

Answer

Sir Stephen Timms
The package of reforms to the Motability Scheme announced as part of the Budget will ensure the Scheme delivers fairness for the taxpayer, while continuing to support disabled people. The Scheme will continue to offer a choice of affordable vehicles to me...

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