All disabled drivers in UK affected by Budget VED | Tech News

Disabled drivers could possibly be set for a main increase on account of a little-known Vehicle Excise Duty (VED) change in Rachel Reeves’ finances. Last week, the Treasury confirmed that the Expensive Car Supplement (ECS) threshold will rise from £40,000 to £50,000 for zero-emission fashions. 

The modifications will come into impact from April 2026, however the new flexibilities will apply to any electric model registered from April 2025 onwards. The Treasury has claimed that the transfer would save drivers over a million motorists £440 per yr. Experts at Mobility in Motion defined that the transfer will be sure that more tailored and suitably outfitted electric automobiles will stay exempt from the complement.

They careworn this may give disabled drivers larger alternative and more accessible pathways to discovering mobility options.

Matt Fieldhouse, Group Managing Director at Mobility in Motion, stated: “The decision to raise the VED Expensive Car Supplement threshold for zero-emission vehicles is another welcome step, giving disabled drivers more room to choose the right electric vehicle for their needs, particularly those who require specialist adaptations.”

At the Budget, the Chancellor additionally confirmed that modifications can be made to the Motability scheme, with some of the richest fashions in the vary axed. Updates would additionally see VAT reduction used to lease more costly automobiles eliminated in a main replace to the scheme. 

However, the Budget confirmed that VAT reliefs on weekly lease prices and vehicle resale will stay in place, Meanwhile, they added that tax modifications “will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users”.

The Budget added: “These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Disability benefit payments and their eligibility will remain unaffected by these changes.”

The transfer signifies that all disabled drivers who meet the eligibility standards can proceed to benefit from VAT exemption on particular vehicle variations. This stays in place regardless of whether or not motorists qualify for the Motability Scheme.

Matt welcomed the information, including: “This is the right decision for disabled people. The continuation of VAT relief brings welcome stability and ensures that those who rely on adapted vehicles can continue to access essential mobility support.

“Maintaining this relief is vital, and we are pleased to see the government recognise its importance.”