Chancellor Rachel Reeves is preparing to announce significant changes to the eligibility criteria for six key disability benefits as part of her forthcoming Autumn Budget.
What Changes Are Planned for the Motability Scheme?
The Labour Chancellor is expected to target the Motability scheme directly, with plans to end access to high-end luxury cars like BMW and Audi. The reforms will also scale back additional perks, including top-tier insurance and comprehensive breakdown cover.
A Treasury source indicated that Ms Reeves believes the scheme has strayed from its core purpose, stating it now offers "a premium motoring experience subsidised by the taxpayer." The source confirmed the Chancellor is "100 per cent committed to ensuring the scheme is there for those who need it most" but highlighted that only one in ten cars on the scheme are adapted for disabilities.
Which Benefits Are Affected?
Eligibility for the Motability Scheme is currently linked to receiving the higher mobility rate of specific benefits. To qualify, applicants must have at least 12 months remaining on their award. The benefits in question are:
- Enhanced rate mobility component of Personal Independence Payment (PIP)
- Enhanced rate mobility component of Adult Disability Payment (Scotland-only)
- Higher rate mobility component of Disability Living Allowance (DLA)
- Armed Forces Independence Payment (AFIP)
- War Pensioners' Mobility Supplement (WPMS)
- Higher rate mobility component of Child Disability Payment (Scotland-only)
Focus on Fairness and Essential Mobility
The Treasury's position is that the proposed changes aim to tackle perceived unfairness. The source clarified that the Chancellor's focus is on "tackling unfairness in the scheme, such as the availability of premium vehicles, while ensuring it continues to support disabled people."
This move signals a significant shift in how the government supports mobility for disabled individuals, refocusing the multi-billion pound scheme on providing essential transport rather than luxury options.
