It comes amid growing concern that the “out of control” Motability scheme is being abused by some disability benefits claimants and their friends and family.
The latest half-year report from the company running the Motability scheme has revealed that another 97,000 people have joined in the past year – bringing its total customer base to 860,000.
Critics say the scheme – which accounted for one-in-five of all new cars bought in the UK last year – has gotten “far too big” and the company running it has “too much money”.
However, disability rights campaigners say the scheme, which can provide adapted cars, is “life-changing” and good value for the taxpayer.
The car scheme has expanded alongside the huge growth in claims for PIP – the disability benefit aimed at helping with daily needs and getting around.
Misuse has also been on the rise. The i Paper revealed in March that Motability had removed vehicles from around 11,000 people for abusing the scheme in recent years – rising from almost 2,500 such cases in 2022 to over 5,000 in 2024. One issue is that the scheme is increasingly being exploited by friends and family members of claimants.
Yarwood said the growing number of people removed showed there was reason to believe the “out of control” scheme was “being gamed”. The Government should review eligibility to “bring the scheme under control”, he added.
“The scheme has got far too big,” Lord Mann told The i Paper. “A proper review should be on the Government’s agenda. It needs tighter criteria. Savings can be made – money that can be returned to the Exchequer.”
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Anyone who qualifies for the mobility element of PIP is eligible for a Motability car, so long as they get the highest, “enhanced” rate of this disability benefit.
Linda Bamford – former convener of an accessibility advisory body to the Scottish Government – said it helps people “retain employment and their independence”.
Work and Pensions Secretary Liz Kendall wants to tighten access to PIP (Photo: Ben Whitley/PA Wire)Fears over PIP cuts
Work and Pensions Secretary Liz Kendall has said the Government plans to squeeze eligibility for the daily living part of PIP to cut the welfare bill – but mobility payments will be protected.
“Some people who have just joined the scheme, alongside existing customers, will, without doubt, need to surrender their vehicles as a result of the welfare reforms if voted through,” said Bamford.
The expert – also a director at the Disability Policy Centre – previously said it does not cost “anything over and above what goes on PIP” to operate.
Motability’s money
Motability’s revenue for the six months to March rose 7 per cent to £3.56bn. It took in around £1.6bn in benefits money during that period, with the rest coming from the resale of vehicles.
A spokesperson for Motability Operations said the scheme provides disabled people with “the independence to access work, education and healthcare”.
Motability’s large reserves ensures the scheme “remains financially sustainable and shields our customers from wider market volatility”, they added.
The Government has been approached for comment.
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