STORY
New welfare reforms affecting the Motability scheme have come into force, with ministers saying the changes will save taxpayers £1 billion by 2030.
VAT will now apply to advance payments on some new Motability car leases, while Insurance Premium Tax will apply to new leases. The Department for Work and Pensions said the changes followed the removal of luxury vehicles, including BMW and Mercedes models, from the scheme after the Budget.
The Government said disabled people on enhanced mobility benefits would continue to receive their full award and remain eligible for the scheme. It also said the changes would not apply to Wheelchair Accessible Vehicles and would not affect existing leases.