Motability scheme to drop luxury cars before budget 

Recipients of Motability will not longer have access to luxury cars, as has been announced and the government has indicated that more money will be allocated to British manufacturers as well as changes.

It is announced only a few days before the budget and it does not seem that the announcement will cause any impact to government finances.

Motability is a program in which individuals receiving personal independence payments (PIP) are allowed to forfeit some portion of their benefits in order to have a rental car in case they are qualified.

Motability cars can receive tax exemptions and the scheme has been criticized due to the significant rise in beneficiaries with no apparent disabilities, as well as a rise in the number of PIP beneficiaries.

The luxury options that one can pay extra money to acquire have also been criticized. Advocates believe that the scheme is beneficial since it enables individuals to move around and enables them to retain jobs and lead more independent lives. Adaptions of vehicles are also covered by the scheme in case individuals require them. 

The announcement this evening is made by Motability Operations which is the charity that manages the scheme.

It states that 50 percent of vehicles leased under the scheme should be manufactured in Britain by 2035, stating it will help in UK economic growth by creating a demand of 150,000 vehicles annually, but not Jaguar and Land Rover. 

Nonetheless, the availability of luxury brands like BMW and Mercedes will be eliminated as alternatives, together with the Audi, Lexus, and Alfa Romeo immediately.

In Motability announcement, it was stated: “In the short term, Motability Operations will work closely with UK-based manufacturers to increase the share of British-built vehicles leased by customers, while maintaining affordability, choice and quality.
“This includes doubling the number of Nissan British-built vehicles that the scheme leases to around 40,000. 
“The intention would be that 25% of cars on the scheme would be UK-built by 2030, up from 7% today.“

Chancellor Rachel Reves said: “Backing British car manufacturing will support thousands of well-paid, skilled jobs and is exactly the long-term investment our Modern Industrial Strategy delivers. 
“We are growing the economy to bring down debt, cut NHS waiting lists and cut the cost of living.”

The government is tonight declining to state whether it will alter the Motability eligibility criteria before the budget, and that the decision in this respect would be forthcoming as an outcome of the Timms review of PIP. In the previous year, the government attempted to cut the swelling PIP bill, however, it was unsuccessful against its own backbenchers, and set about a review headed by a minister, Stephen Timms, to examine the system.