A major change has been announced to the Motability car scheme, with several top-end brands being removed from the list of vehicles available to people with disabilities. Ministers had warned that it was becoming “unfair” for working families to see luxury cars offered through a programme funded by taxpayers. Motability has now confirmed that BMW, Mercedes, Audi, Lexus and Alfa Romeo will no longer be offered on new leases.
The organisation said the update takes effect straight away and is designed to focus the scheme on cars that “meet disabled people’s needs and represent value and purpose”. Anyone already driving one of the removed brands will be able to keep their current car until the end of their lease, but they will have to choose a different manufacturer when they next renew. Mini, which is also owned by BMW, remains on the list.
The Motability scheme enables individuals on the enhanced rate of the mobility component of Personal Independence Payment (PIP) to use their benefit to lease a car.
The agreement includes insurance, servicing, breakdown cover and maintenance.
Most cars under £27,000 require no upfront payment, but higher-priced models can need contributions ranging from £95 to more than £7,000.
The programme has grown quickly as more people apply for PIP, and Motability received £2.8 billion in public funding last year, The Telegraph reported.
Officials say the changes are intended to keep the scheme sustainable and maintain public support.
Motability’s chief executive Andrew Miller said the organisation knows how important the scheme is to disabled people.
He said: “The Motability scheme makes a difference to disabled people’s lives every day and our customers tell us it is a lifeline to freedom and independence.
“Working with the government and the automotive sector, we want to do even more to support the economy and our ambitious commitment should put British car manufacturing into top gear.”
However, BMW said the decision will affect many of its customers who rely on Motability.
A spokesman said it would be “disappointing for the many BMW customers who participate in the scheme”, adding that the company will “work with Motability to ensure prompt vehicle delivery for any existing orders”.
The Government has also highlighted the impact the scheme has on the UK car industry.
Motability is now the country’s biggest fleet operator with about 815,000 vehicles on the road. By 2035, it wants around half of them to be built in Britain.
Chancellor Rachel Reeves said the scheme will continue to support jobs and investment.
She said: “Backing British car manufacturing will support thousands of well paid, skilled jobs and is exactly the long-term investment our Modern Industrial Strategy delivers.
“We are growing the economy to bring down debt, cut NHS waiting lists and cut the cost of living.”