Peter Vosper: Government looks at ways to cut the cost of Motability

The Chancellor Rachel Reeves is considering making changes to the Motability scheme following information that the number of claimants has increased by more than a third since 2017 and now accounts for one in five new cars sold in Britain.

The Times revealed last month that 45,512 cars made by BMW, Mercedes and Audi were being leased, making up around 5% of the scheme’s total. There is concern that widening the categories of people who can claim has increased demand. Taxpayers give £2.8 billion a year to Motability that allows disability benefits claimants to exchange their mobility allowance for a new car, and increased costs of new cars has made this more attractive.

Government sources insisted the reforms were about fairness rather than simply cost cutting. A Motability car is vital for many and enables disabled people to participate and enjoy daily life and it is only the few who are taking advantage of the rules and are using the scheme for the wrong reasons. Should a son or daughter be able to have a car to drive his disabled parent who is unable to drive themselves?

Of course, but for some families this has become a method of acquiring a car for a family member at no cost. This car becomes the son’s or daughter’s vehicle more for their benefit than their disabled parent. Furthermore, if a disabled driver can afford a large deposit to drive a luxury vehicle should this be financed by the taxpayer. The Chief executive of Motability made the point the rules were set by government, so it is up to them to review them and ensure the scheme exists for those who need it.

The government has also been urged to change proposed rules which require charging stations with at least 12 150-plus chargers to provide “hot drinks and cooked hot food for consumption on the premises”. If they want a sign put up, the rules also require them to “provide free parking for two hours” and “at least ten parking spaces for non-charging users”. 

Under the proposed guidelines, chargers located by a Greggs or Macdonald’s would not get a sign because of the requirement for the charging hub itself to have food and drink “for consumption on the premises”. There can be little doubt that a lack of visibility about charging stations will hamper the uptake of electric vehicles as drivers of petrol or diesel cars will not get used to seeing signs for charging stations. With not one of the 112 rapid charging stations by A roads and motorways being eligible for a sign to alert motorists of their existence.

The government undertook to providing this information as well as pricing but so far have failed to deliver. If they are serious about encouraging drivers to move to electric powered vehicles please take action now.