Motability: Finance
The question
To ask the Secretary of State for Work and Pensions, how much funding his Department has provided to the Motability Scheme in 2025.
Answered by Sir Stephen Timms
The Motability Scheme receives no direct funding from DWP. However, it does receive the direct transfer of benefit from DWP. This is claimant benefit the claimant would otherwise be receiving, and the cost of transfer is paid for by the Motability Foundation. The total value of benefits transferred to Motability in financial year 2024–2025 the Department for Work and Pensions was £3,074,920,421.67.
The Motability Scheme also receives zero rate VAT for hire of motor vehicle to individuals in receipt of specified disability benefits; zero rate VAT for sale of lease vehicle on first sale after end of lease and zero rate Insurance Premium Tax (IPT) on Scheme policies.
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