Thousands of disabled motorists across the UK may be paying significantly more in vehicle tax than they need to, despite being eligible for government-backed discounts.
According to Mike Thompson, Chief Operating Officer at Leasing Options, many claimants of Personal Independence Payment (PIP) and other disability benefits are missing out on reductions in vehicle excise duty, commonly known as car tax, that could slash their annual costs by up to half, or remove the tax entirely.
“As of 2025, there are over 1.3 million disabled motorists on the road,” Thompson said.
“When registering your vehicle tax, you may not realise you are eligible for a discount. But applying these exemptions could save you hundreds of pounds over the coming years.”
Government rules state that individuals with disabilities may be entitled to a 50% reduction or a full exemption from car tax for one vehicle.
To qualify, the car must be registered either in the name of the person with the disability or in their nominated driver’s name, and it must only be used for the disabled person’s personal needs.
Eligibility is linked to specific benefits, including:
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The higher rate mobility component of Disability Living Allowance (DLA)
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The enhanced rate mobility component of Personal Independence Payment (PIP)
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The War Pensioners’ Mobility Supplement
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The Armed Forces Independence Payment
Less well-known qualifying criteria also apply to claimants of the enhanced rate mobility component of Adult Disability Payment (ADP), parents of children receiving the higher rate mobility component of Child Disability Payment, and those covered under the Scottish Adult Disability Living Allowance.
Motorists can apply for the discount when taxing their vehicle. If registering a car for the first time, the exemption must be processed at a Post Office branch.
Applications must also be repeated whenever a vehicle is changed or upgraded.
With household budgets under pressure, experts are urging disabled drivers and their families to double-check their eligibility. “Many are simply unaware of what they can claim,” Thompson added.
“But for those entitled, these savings could make a real difference.”
