Major Overhaul Planned for Disability Car Scheme
Chancellor Rachel Reeves is reportedly preparing significant reforms to the Motability scheme as part of her Autumn Statement scheduled for November 26. In a recent interview, the Chancellor stated that the welfare system could not be left 'untouched' and that reform was necessary.
Proposed Changes to the Motability Scheme
The potential changes, as reported, are substantial and could alter the scheme for its users. Key proposals under consideration include:
- Scrapping tax breaks: Eliminating the VAT and Insurance Premium Tax (IPT) exemptions currently applied to vehicles leased through Motability.
- Removing premium brands: Taking luxury manufacturers like BMW and Mercedes out of the programme entirely.
- Tightening eligibility: Making it harder to qualify for a Motability vehicle in the first place.
A Treasury spokesperson declined to comment on the speculation, maintaining their standard policy of not discussing potential tax changes outside of official fiscal events.
Concerns and Criticisms from Advocates
The prospect of these changes has already drawn criticism from disability advocates and MPs. Emma Vogelmann, co-chief executive of the campaign group Transport for All, issued a stark warning. "A Motability car changes that – it allows us to work, shop, and do the school run," she said. "Scaling back the scheme would lock disabled people away from daily life. Does the chancellor want to take away our freedom?"
Meanwhile, Labour MP Rachael Maskell, a known critic of previous government attempts to cut disability support, urged a cautious approach. She emphasised that the government must adopt a process of 'co-production' with disabled people, warning that "random top-slicing or cuts often cost more in the long run."
With the Autumn Budget just days away, thousands of disabled people across the UK are now waiting anxiously to see if these proposed cuts to a vital lifeline will become a reality.
