The Government has responded to mounting pressure to abandon proposed changes to the Motability scheme. These changes are expected to leave the average affected person up to £400 worse off.
Motability is a scheme that allows disabled people to swap their qualifying mobility allowance for a new car, a Wheelchair Accessible Vehicle (WAV), a scooter, or a powered wheelchair. It provides a lease package that covers insurance, maintenance, servicing, and breakdown assistance.
However, if the proposed amendments are pushed through, scheme users will be required to pay Insurance Premium Tax and VAT on newly leased vehicles. The changes would also remove premium marques such as Audi, BMW, Lexus, and Mercedes-Benz, along with coupes and convertibles, from the scheme.
When announcing the changes in the Autumn Budget, Labour Chancellor Rachel Reeves said: "The Motability scheme was set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz, and so I am making reforms that will reduce generous taxpayer subsidies.
"Motability have confirmed that they will remove luxury vehicles from their scheme, getting the scheme back to its original purpose of offering cost-effective leases to disabled people." The proposed shake-up has sparked backlash, with a petition calling for the changes to be scrapped now boasting more than 40,000 signatures.
The petition stated: "The recent budget has announced taxes on advanced payments and a decrease in mileage allowances. We believe this is unfair to the most vulnerable in society and could affect their independence.
"Many disabled people earn considerably less than average and a cost increase could mean they struggle to get a car. Many disabled people also need to use their car for short journeys, where others may be able to walk, and mileage soon adds up because of this.
"While those living in big cities could potentially rely on public transport, public transport is often rare in rural areas, which may potentially take people's independence away." The Government has now issued its response to the petition, confirming the changes will proceed.
A Department for Work and Pensions (DWP) spokesperson said: "The Government and Motability have worked in partnership to develop reforms which strike the right balance between delivering a key service for disabled people and fairness to the taxpayer."
They suggested the reforms could generate savings exceeding £1 billion. "The Government and Motability have worked in partnership to develop a suite of reforms which strikes the right balance between delivering a key service for disabled people and fairness to the taxpayer, saving over £1 billion by financial year 2030/31," they said.
"These reforms will not affect eligibility for the Motability Scheme or disability benefits." The spokesperson continued: "In determining these changes, Motability have taken careful steps to ensure the Scheme remains good value and accessible for disabled people.
"This includes engaging with Scheme customers about prospective changes, the feedback from which has informed the changes." For the complete response and to view the petition, head to the Parliamentary petition website here.