A former Department for Work and Pensions (DWP) insider has declared that recent cuts to Personal Independence Payment (PIP) perks, including luxury cars, do not go nearly far enough.
Calls for Deeper Reform
Matt Ryder, the former head of Motability policy at the DWP, has spoken out after Motability Operations announced it would stop leasing high-end models like BMWs, Audis, and Mercedes "immediately". He told the I newspaper that these changes are insufficient. "I don't think these changes will make much difference. It doesn't go far enough. It will not save taxpayers any money at all," Ryder stated.
He further criticised the move, pointing out that "Motability are still offering high-spec models with some [car] brands" and that "There's no guarantee this will be a permanent change." Ryder urged the new Labour Party government to push on with more significant tax reforms and eligibility changes.
Missed Opportunities and Hidden Subsidies
Ryder identified a key area where the government is missing a crucial opportunity. "If tax relief isn't ended, it's a missed opportunity," he said. "Ending the tax relief would have brought in money. It would have ended a hidden subsidy in the benefits system."
He also suggested that the government must examine the rising number of PIP mobility awards linked to mental health conditions. "The rise in mental health cases in mobility [awards] is worth looking at as part of the PIP review," Ryder advised, indicating that this should be a focal point for any serious overhaul.
Cross-Party Pressure for Change
The sentiment that the current changes are inadequate is echoed across the political spectrum. Conservative Shadow Work and Pensions Secretary Helen Whately labelled the Motability decision as "window dressing" and called for more "serious reform" to restrict PIP.
Similarly, Reform UK's welfare spokesperson, Lee Anderson, stated the changes "do not go far enough". Chancellor Rachel Reeves has also signalled her intent for a wider system overhaul, stating last month that "We can't leave welfare untouched" and emphasising the need for reform.
Reeves is expected to take further action, including ending some tax reliefs for Motability cars. This could involve imposing an insurance premium tax, making leasing more expensive, and charging VAT on advance payments for higher-value vehicles.
