DWP urged to review Motability scheme as part of new welfare reforms

Daily Record

7 hours ago

Conservative MP Danny Kruger has urged the Department for Work and Pensions (DWP) to include a review of the Motability scheme as part of the UK Government's planned benefits reforms. The shadow minister put the suggestion to the senior DWP ministerial team on Monday during oral questions.
The MP for East Wiltshire said: 'One area where the Government do not seem to be looking for savings is in the Motability scheme. It was supposed to help physically disabled people get around, but now we have 100,000 new people a year joining the scheme, many of them not physically disabled at all.'
He highlighted how one in five of all new car purchases are bought through the Motability scheme which is 'costing taxpayers nearly £3 billion a year'.
Mr Kruger added: 'I know that the Minister will blame us (Conservative party) for the system, but the fact is that the Government are not even looking at Motability. They have had a year, and it is their policy now. Will the Minister commit to a proper review of the Motability scheme, and if not, why not?'
Minister for Social Security and Disability Sir Stephen Timms, responded: 'I am not sure whether the shadow Minister wants me to go further or not so far - he seems to be facing both ways. He is right that we are not at this point proposing any changes to the Motability scheme.'
The Motability Scheme enables people in receipt of a disability benefit, with an award for the higher or enhanced rate of the mobility component, to transfer some or all of the payment to lease a new car, wheelchair-accessible vehicle, scooter or powered wheelchair.
As well as a new car, customers also benefit from insurance, breakdown assistance, servicing, maintenance, tyres and windscreen repairs as part of the package.
The latest price list for leasing packages shows there are now more than 800 vehicles to choose from.
It's important to be aware the DWP does not oversee the scheme, but instead facilitates a direct transfer to Motability of a claimant's payment - in part or full - if they elect to join the nationwide scheme.
The higher rate of the mobility part of Personal Independence Payment (PIP) is worth £77.05 each week, some £308.20 every four-week payment period.
The latest figures from the charity behind the Motability Scheme (Motability Operations) show there are now 815,000 customers across the UK, including around 80,000 living in Scotland.
The Motability Scheme, or Accessible Vehicles and Equipment Scheme as it is known for those on devolved disability benefits such as Adult Disability Payment (ADP) or Child Disability Payment (CDP), offers an affordable way for disabled people to get around outside more easily.
PIP reforms
There are currently 3.7 million people across Great Britain in claim for PIP, however, the UK Government expects that figure to rise by a further 750,000 to 4m by the end of the decade and has proposed a raft of new measures to make the benefit sustainable for future generations.
Proposed package of reforms to overhaul the welfare system, include:
Ending reassessments for disabled people who will never be able to work and people with lifelong conditions to ensure they can live with dignity and security.
Scrapping the Work Capability Assessment to end the process that drives people into dependency, delivering on the UK Government's manifesto commitment to reform or replace it.
Providing improved employment support backed by £1 billion including new tailored support conversations for people on health and disability benefits to break down barriers and unlock work.
Legislating to protect those on health and disability benefits from reassessment or losing their payments if they take a chance on work.
To ensure the welfare system is available for those with the greatest needs now and in the future, the UK Government has made decisions to improve its sustainability and protect those who need it most.
These include:
Reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and are not written off.
Targeting PIP for those with higher needs by changing the eligibility requirement to a minimum score of four on at least one of the daily living activities to receive the daily living element of the benefit, in addition to the existing eligibility criteria.
Rebalancing payment levels in Universal Credit to improve the Standard Allowance.
Consulting on delaying access to the health element of Universal Credit until someone is aged 22 and reinvesting savings into work support and training opportunities through the Youth Guarantee.
DWP also launched an online consultation on the new proposals to coincide with the publication of the Green paper. The consultation can be completed by anyone and is open until 11.59pm on Monday June 30, 2025 - you can find full details on GOV.UK here.
It's important to be aware that the proposed reforms announced by the DWP will not affect people in Scotland claiming Adult Disability Payment.
The Scottish Government announced earlier this week it has no plans to mirror the proposed changes to devolved disability benefits.