The future of a vital car scheme for disabled people is under threat, sparking a major political row. The UK Government is facing urgent calls to abandon proposals that could remove crucial tax exemptions from the Motability programme, a move critics warn would disproportionately impact vulnerable individuals.
Scottish Government Issues Stark Warning
Scotland's Social Justice Secretary, Shirley-Anne Somerville of the SNP, has written directly to the Labour government. In her letter, she implored Chancellor Rachel Reeves and the Department for Work and Pensions (DWP) not to target the scheme in a bid to balance the public finances.
Ms Somerville highlighted that Motability supports 87,843 customers in Scotland alone, many of whom are disabled people or carers. She argued the proposed changes would create significant fear and uncertainty, stripping away essential mobility for those who rely on the scheme to lease vehicles affordably and without credit checks.
Potential for Soaring Costs for Users
The core of the controversy centres on potential alterations to the VAT arrangements for the scheme. According to Ms Somerville, Motability has indicated that if the UK Government implements these changes, advance payments for vehicles could rise dramatically.
This would hit disabled households at a time when budgets are already under immense pressure. The SNP minister also expressed concern that the Scottish Government, while responsible for the devolved Access to Work and Employment (AVE) Scheme under which Motability operates, was not consulted on the tax proposals, which remain a Westminster matter.
"I would strongly urge you to abandon these proposals and ensure that disabled people can access the support that meets their needs," Ms Somerville wrote. "If the UK Government does not, then disabled people can conclude that the UK Government remains content to balance the books at their expense."
Government Defence and Scheme Criticism
The UK Government has responded to the emerging debate by stating that Motability is independent and responsible for its own administration. However, Treasury sources have previously argued that the scheme has lost its original focus, suggesting it now helps people beyond those in most need and is becoming too costly for taxpayers.
Some critics have called for the scheme to be curtailed, with proposals to exclude luxury high-end cars and tighten eligibility criteria for those on DWP benefits. The outcome of this dispute will have direct consequences for the mobility and independence of hundreds of thousands across the UK.
