Motability Under Fresh Review As DWP Considers Future Cuts

The Department for Work and Pensions is considering further changes to the Motability Scheme after tax breaks worth £300 million were removed, according to reports. The discussions come as Motability Operations introduces its latest quarterly vehicle price list for disabled customers across Great Britain.

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Motability Under Fresh Review As DWP Considers Future Cuts
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The scheme allows people receiving qualifying disability benefits to use some or all of their mobility allowance towards leasing a car, wheelchair-accessible vehicle, scooter or powered wheelchair. More than 815,000 people now use the scheme across Great Britain, including about 80,000 customers in Scotland under the Accessible Vehicles and Equipment Scheme.

DWP Officials Revisit Possible Changes to Motability

According to the Guardian, DWP officials have been “returning to the idea of cuts to the Motability scheme at a future budget” following the removal of tax breaks valued at £300 million.

Motability enables eligible recipients of benefits including Personal Independence Payment and Disability Living Allowance to lease vehicles, generally by transferring their qualifying mobility payment towards the cost. In Scotland, equivalent arrangements apply to people receiving qualifying awards such as Adult Disability Payment, Child Disability Payment and Scottish Adult Disability Living Allowance.

The Birmingham Mail reported that 29 per cent of disabled adults do not have access to a car, compared with 16 per cent of non-disabled adults. Disabled people are also more likely to experience financial difficulties and to depend on relatives or carers for transport.

Dr Mark Carew, of the London School of Hygiene and Tropical Medicine’s International Centre for Evidence in Disability, said transport barriers can include inaccessible railway stations, unavailable ramps and difficulties using designated wheelchair spaces.

“Disabled people face so many barriers in accessing transport,” Carew said, according to the Birmingham Mail. He also argued that Motability allows disabled people to make choices that can help reduce some of those barriers. The scheme is operated by the private company Motability Operations and overseen by a charitable foundation. Vehicles are purchased and leased to customers, normally for three years, before being sold.

New Price List Offers More Than 670 Vehicles

A separate update published by the Daily Record said Motability’s autumn price list came into effect on 1 October and will remain in place until the end of December. More than 670 cars are available during the period, including nearly 30 that require no Advance Payment.

Motability Operations updates its prices four times a year, on 1 January, 1 April, 1 July and 1 October. The organisation says the changes reflect vehicle prices, supply and availability, alongside the cost of insurance, servicing, maintenance, repairs and breakdown cover included within leases.

Customers use their qualifying mobility allowance towards the lease. Where that payment does not fully cover the vehicle cost, an Advance Payment may be required. These payments can therefore rise, fall or remain unchanged when a new quarterly list is introduced.

According to the Daily Record, Motability Operations chief executive Andrew Miller described the latest period as a “challenging quarter” and acknowledged that some customers would feel pressure from rising costs.

“For our customers, having the right vehicle means freedom to work, see family, get to appointments and live life independently,” Miller said. Customers who have already ordered a vehicle retain some price protection. Motability states that the price is fixed once an order has been placed, meaning an increase in the Advance Payment before collection does not affect the agreed amount.

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