People receiving Personal Independence Payment (PIP) from the Department for Work and Pensions (DWP) are set for a major announcement this Thursday morning. The organisers of the Motability Scheme have confirmed a significant update is on the way.
Winter Price List and Budget Changes
The immediate change will be the publication of the new Winter price list for vehicle leasing packages on the Motability Scheme website on January 1. This list, which details the cost of available packages, is updated every three months.
This update follows changes made by Motability in response to decisions in the Labour government's Autumn Budget. Andrew Miller, CEO of Motability Operations, stated that the government announced alterations to tax exemptions for the Scheme. "These tax changes mean extra cost," Miller explained, "so we now need to review how the Scheme works to help keep it as affordable as possible for our customers."
Managing Rising Costs and Scheme Evolution
The organisation is also responding to wider economic pressures. Miller acknowledged that costs have been rising for some time, an issue already communicated to users. The recent tax shifts have necessitated a more careful look at cost management to limit the impact on customers and the prices they pay.
He highlighted that before the Covid-19 pandemic, the Scheme benefited from strong resale values when vehicles reached the end of their leases. This surplus helped fund extra features and add value for customers' lease payments.
Over the next six months, Motability will prepare to evolve the Scheme. This will involve examining what is included, how costs are managed, and ensuring the Scheme's long-term sustainability. "We'll be speaking with customers as we look to make these changes," Miller assured, "and we'll be doing everything we can to protect what matters most to you."
Customer Communication and Practical Updates
Among the forthcoming changes are updates to the range of cars available on the Scheme. Miller recognised that change can be worrying for users. "That's why we'll take time to get things right and keep you informed at every step," he said. He promised customers would always receive plenty of notice about any updates, with clear explanations of what they mean for them.
In the interim, the Scheme will continue to implement smaller, practical updates if ways to save money or operate more efficiently are identified.
