Peter Vosper: Is more criticism of the Motability scheme fair?

Following record sales last year, there are now assertions that Motability has allowed exploitation of the benefits system enabling thousands more people to be given BMWs and Mercedes every three years at the taxpayers’ expense.

The Motability scheme launched as a charity in 1978 to allow claimants of a new mobility allowance to use the money to lease a new Fiesta or Mini. 

Motability Operations was formed as a private enterprise to oversee the scheme. 

Big banks put in £100 million and the scheme is now owned by HSBC, Barclays, Lloyds and NatWest who are not entitled to take dividends. The profits are put back into the business. 

The scheme has grown steadily but has increased dramatically since Covid, in some part because of a widening of groups who were allowed to access this. 

However, some drivers who were entitled to a Motability car but did not like the cars on offer as well as being able to afford to acquire their own personal choice, did so, until recently. 

Firstly, car prices grew faster than inflation as the manufacturers had increased costs due to the move to electric power. 

Secondly, all manufacturers experienced new car sales falling well below the peak in 2017 and saw Motability as a short -term solution. 

This led to availability of a wider range of cars in both brands and price. 

For those who qualified the gap was now so great between the cost of a private purchase and the giving up of their cash allowance, so they switched to Motability.

Many manufacturers also saw Motability as a route to help reach their electric percentage requirement and offered Motability customers advantageous deals even in cases where they were not able to have a wall-box charging unit at home. Many of these were returned causing Motability considerable losses. This also caused a doubling up of thousands of vehicles last year.

Motability do agree there are some people who bend the system to their advantage and could afford to pay for their own car, but deposits are larger on the more expensive models. John O’ Connell Chief Executive of the Taxpayers’ Alliance said: “It’s the government who designed and oversees the rules of the scheme and it’s ministers who have allowed a lack of scrutiny and accountability to persist for years.”

Most franchised dealers have supported the Motability Scheme for years and are proud to contribute to the freedom of mobility it gives disabled drivers. 

This should not be affected by the few who receive the benefit who have no need of it. 

Many disabled people have been given a new lease of life and are able to enjoy the pleasure of a new car every three years and not having to rely on others. 

Having a scheme where all servicing, insurance and tyres are paid for in exchange for their cash allowance gives them this independence.

Motability and the government should do better at providing suitable cars and qualifying potential applicants in the future.