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Young disabled individuals have expressed strong dissatisfaction with the recent significant amendments to the Motability scheme, marking the first major changes since its inception nearly five decades ago. Chancellor Rachel Reeves revealed in the Budget that the insurance costs covered within Motability leases will now be subject to tax, and VAT will be applied to advanced payments made for higher-value vehicles. Reeves described this move as part of efforts to “reduce generous taxpayer subsidies” associated with the program, which helps eligible disabled people lease vehicles equipped to meet their specific needs.
The number of users benefiting from Motability cars has surged to 860,000 in recent years. This growth is largely attributed to more individuals successfully claiming the higher-rate mobility component of benefits such as the Personal Independence Payment (PIP), which are designed to offset the additional travel expenses faced by disabled people. Eighteen-year-old River-James Whybrow, who is autistic, has ADHD, and suffers from a condition causing joint pain, shared that he often feels “judged” for utilizing a Motability car. Although he cannot drive, having access to the vehicle allows his support worker to assist him in getting out and enjoying activities beyond his home. He voiced his frustration over the removal of tax breaks, saying that policymakers “aren’t living it” and “If they knew what it was like, day in, day out, they might not be making those decisions.”
Similarly, 21-year-old Maxwell McKnight, who uses a specially adapted wheelchair van to attend university, work, and visit his girlfriend, expressed his annoyance at misunderstandings about the scheme. He pointed out how people online question why taxpayers would fund his vehicle, despite a lack of awareness that he does not receive his van “for free.” Maxwell noted that although his heavily adapted van will not face the new VAT charge on upfront payments, the government’s description of the scheme as providing “generous taxpayer subsidies” fosters misconceptions that disabled individuals are dependent on benefits. He highlighted, “It’s shown like disabled people live off benefits, when we don’t.”
The removal of tax reliefs on Motability has also generated concern from advocacy groups. Cat Whitehouse, co-chief executive of the charity Transport for All, warned that these changes could impose significant financial burdens on disabled people, potentially isolating them from society. Meanwhile, critics have argued that eligibility criteria for Motability, particularly relating to mental health conditions assessed through PIP, have expanded beyond the scheme’s original intent. Matt Ryder, formerly involved in Motability policy at the Department for Work and Pensions, asserted, “You should not be able to get a Motability car with mental health issues. The policy intent was clear.” The scheme faced further scrutiny recently when it was announced that customers would no longer be able to select premium car brands such as BMW or Mercedes under Motability, with Chancellor Reeves emphasizing in Parliament that the scheme is “set up to protect the most vulnerable, not to subsidise the lease on a Mercedes-Benz.”
While the government confirmed that vehicles requiring no advance payment would remain accessible to those qualifying solely on the basis of disability benefits, officials also stressed a commitment to reforming Motability and reducing taxpayer costs by £1 billion over five years. Motability itself has implied that a complete removal of VAT exemptions could have threatened the scheme’s survival. As revisions continue, many disabled users fear that the changes might undermine their independence and daily lives
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