Autumn statement 2025: How the budget will affect disabled people

The government has announced its latest Budget, which outlines its plans for the economy, including changes to taxation and spending. 

Some of the measures included in the Budget have previously been announced. 

Scope will be analysing Budget documents over the coming days to identify the full impacts for disabled people. This article will be updated with more detail.  

Here are the main points so far of how disabled people will be affected: 

Changes to Motability scheme 

Newly announced changes: 

• The government is making changes to the Motability Scheme, which leases vehicles to disabled people. 
• Previously, disabled people’s payments towards vehicles have been exempt from VAT, but for new leases from July 2026, the Chancellor has removed this exemption for some cars on the scheme. 
• This means that some advance payments – a lump sum paid upfront for a car - will increase depending on the model. 
• More expensive cars like BMWs and Mercedes will be removed from the scheme altogether. 

Changes to benefits 

Newly announced changes: 

• The government is extending Personal Independence Payment (PIP) award reviews periods, which means reviews will be less frequent for some claimants. 
• The government is increasing the rate of working-age benefits such as Universal Credit by 3.8%, in line with inflation, from April 2026.  
• The two-child benefit cap will be removed from Universal Credit from April 2026. The current cap means parents can only claim universal credit or tax credits for their first two children.  

Previously announced changes: 

• The government is increasing the number of Work Capability Assessments and face-to-face Universal Credit health assessments. This means disabled people who are not able to work may face more frequent assessments to get out-of-work benefits. 

Employment support 

Newly announced changes: 

• The Government will provide £725 million towards funding apprenticeships for young people. 

Previously announced changes: 

• The government will provide £820million to fund a Youth Guarantee scheme. This will guarantee a six-month paid work placement for every eligible 18 to 21-year-old who has been receiving Universal Credit and looking for work for 18 months. It will start in 2026. 
• Anyone who is disabled and claims out-of-work benefits will have access to 1,000 specialist advisers and tailored support to find work. 

Energy costs  

Newly announced changes: 

• Households are expected to save £150 on energy bills from April 2026 because of some changes to levies. Levies are charges included in energy bills to fund environmental and social programs.  
• The changes include removing the Energy Company Obligation (ECO) scheme levy, which funds energy efficiency measures. The government will also take 75% of the Renewables Obligation (RO) levy off bills, and instead fund this through general taxation. 
• The government will provide an additional £1.5 billion capital investment to tackle fuel poverty through the Warm Homes Plan. 

Previously announced changes: 

• In October, the £150 Warm Home Discount was expanded to a further 3 million of the poorest households on means-tested benefits.