DWP benefit claimants sometimes have to be assessed (Image: Getty)

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The Department for Work and Pensions (DWP) provided an update on changes to the Motability scheme, which came under scrutiny due to the high cost and access by claimants with less severe conditions.

The government confirmed that the removal of some "tax reliefs," specifically the application of VAT to Advance Payments and Insurance Premium Tax to Scheme leases, will take effect from July 2026.

Motability anticipates that these tax changes will cause the average Advance Payment (upfront cost) of a vehicle to increase by around £400 over the three-year package.

The changes are intended to improve value for money for taxpayers while refocusing the scheme on its original purpose: assisting tho

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