Chancellor Rachel Reeves is gearing up to overhaul the Motability scheme as part of an effort to slash more than £1 billion from the budget. The move targets the taxpayer-funded programme that lets over 860,000 disabled Brits lease vehicles without paying VAT or insurance premium tax.
Luxury Motors Under Fire
The scheme, costing taxpayers £2.8 billion a year, faces criticism for allowing access to high-end car brands like Mercedes and BMW. Reports suggest Reeves might impose restrictions on luxury vehicles to tighten spending.
Additionally, there are whispers of a wider review of tax breaks tied to the scheme amid concerns over generosity.
Who Really Qualifies?
Despite the backlash over the scheme’s leniency — with some eligible conditions including tennis elbow, constipation, and anxiety — The Times says Reeves is unlikely to restrict who qualifies for Motability support.
Founded in 1977, Motability provides cars, scooters, and powered wheelchairs to improve disabled people’s freedom. But critics argue the inclusion of premium cars for some claimants sparks fairness and cost debates.
Upcoming Budget to Reveal Motability Fate
The Chancellor’s next Budget, expected next month, will be under the microscope as MPs and critics await potential reforms to welfare and tax. Motability’s future, along with government support for disabled citizens, is set to be a hot topic in public spending talks.
