WAVs and the Budget Changes: What This Means For You

The recent Budget announcement has raised questions around how future VAT and Insurance Premium Tax (IPT) changes may affect vehicles on the Motability Scheme. However, one thing that is clear is that Wheelchair-Adapted Vehicles (WAVs) remain exempt from these new charges.

That’s great news for the many disabled drivers and passengers who rely on a WAV to maintain their independence. WAVs play a vital role in supporting everyday routines and overall quality of life, so this decision is an important step in protecting accessibility.

However, while WAVs themselves are not affected, the wider scheme may still experience indirect impacts once the changes come into effect. If the cost of some non-exempt vehicles increases, it’s possible that individuals applying for a WAV in the future could feel knock-on effects in terms of choice, availability or financial considerations – although this remains to be seen until more detail is released.

As conversations around vehicle choice begin to grow, this does create an opportunity to look at the benefits of owning a WAV privately, compared to leasing one. For some individuals and families, purchasing a WAV can offer more flexibility and control.

Here are a few reasons why private ownership can be worth exploring:

When a WAV is insured privately, the policyholder can build up a no-claims bonus over time. This isn’t possible on a Motability vehicle as it’s leased rather than owned, and the insurance sits with the scheme rather than the individual. So, although cover is included, you don’t earn a traditional no-claims bonus. For long-term WAV users, this can be a key benefit, especially for those who may move between vehicles over the years or prefer to manage their own insurance arrangements.

Buying a WAV privately allows individuals to choose from a broader range of makes and models. This can be particularly helpful for people with specific access needs, equipment requirements or space considerations.

Private ownership allows buyers to focus on the vehicle that best suits their lifestyle, rather than selecting from a predetermined list.

Many WAVs on the Motability Scheme require an advance payment, which can vary widely depending on the vehicle and its specification. As Motability is a lease model, the vehicle must be returned at the end of the agreement, meaning that the advance payment is ultimately paid on a vehicle the customer does not get to keep.

Drivers that choose to purchase their WAV privately avoid this upfront payment and instead take full ownership of the vehicle from day one.

Buying a WAV privately means you can:

For individuals who like stability or prefer long-term ownership, this can be a real benefit.

With WAVs exempt from the announced tax changes, there remains two options for you to consider when choosing the option that best fits individual needs.
Accessibility will continue to be a major focus throughout 2026 and clearer information is expected as further guidance around the new tax rules emerges.
What matters most is that disabled drivers and passengers have access to safe, comfortable and reliable transport that supports independence – whether leased or owned.
Fish Insurance offers specialist WAV insurance policies tailored specifically for wheelchair adapted vehicles. We can provide information on the types of cover available and help you find the right policy to suit you.

For more information, contact our friendly team on 0333 331 3770 or email [email protected]