Court of Protection orders change to how Motability contracts are handled by deputies | What a deputy needs to know

On July 18th 2025, The Court of Protection updated and clarified the legal position for deputies arranging vehicle contracts under the Motability Scheme, in a ruling aimed at reducing risks faced by those acting as deputies for people who lack capacity to manage their own affairs.

Previously, Motability contracts have listed the deputy (or attorney) as “hirer”, treating them as the contractual principal, rather than recognising their legal status as an agent. This has exposed deputies to potential liability — including for insurance claims or traffic offences committed by drivers using the vehicle.

What has changed?

• The Court confirmed that a deputy for property and affairs (appointed under section 16(2) of the Mental Capacity Act 2005) must be treated as an agent, not the principal, when acting within their authority.
• Motability (and its insurers) has agreed to a “manual amendment” workaround: when requested by a deputy, hire agreements will be altered to name the person lacking capacity (P) as the hirer “by his/her deputy,” with the deputy handling correspondence.
• Motability also committed to recognising deputyship status (and the analogous status of attorneys under lasting or enduring powers) more broadly, and to take steps to update its systems and communications accordingly. 

What does this mean for deputies?

• Before this ruling, many Motability hire agreements listed the deputy as the “hirer” (i.e. the contractual principal), rather than recognising the deputy as acting on behalf of P. That created potential risks:
  Liability for insurance claims: the deputy might be held as the insured party and liable for claims arising from vehicle use.
• Traffic or motoring offences: if the vehicle is used by carers or family members, the deputy could be the first point of liability (e.g. for speeding fines) if they are named as the contractual hirer.
• Insurance / indemnity issues: claims made against a deputy in their name may affect their personal or professional indemnity insurance.
• Systemic / technical mismatch: DWP and Motability IT systems had no capacity to record “deputy for property and affairs” status separately, so Motability defaulted to the deputy being the principal under contracts. 

This means deputies have been operating in a precarious position — signing contracts that, on paper, exposed them to liabilities they may not legally bear.

If you are a deputy and are unsure how these changes will affect you, our specialist Court of Protection Team are here to help. Just email courtofprotection@moore-tibbits.co.uk or call 01926 35704.