Motability
The question
To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the potential impact of recent changes to the Motability scheme, including the removal of certain vehicle brands, the introduction of VAT on advance payments and Insurance Premium Tax on scheme insurance, and operational changes to breakdown cover and mileage allowances, on disabled people’s access to suitable vehicles; and if he will publish the estimated cost savings arising from each change, the criteria used to determine which vehicle categories were removed, and which Ministers approved these decisions.
Answered by Sir Stephen Timms
We are protecting the taxpayer through changes to the Motability scheme, ensuring it supports disabled people whilst delivering efficient use of taxpayers’ money. This includes the removal of some luxury vehicles from the leasing scheme while maintaining a range of vehicles to support disabled people. Tax changes will not impact vehicles substantially adapted for wheelchair users, or existing leases, and Motability will continue to provide vehicles at no additional cost to the value of eligible disability benefits.
Decisions on tax were made in the usual way by HM Treasury ministers, in close consultation with DWP Ministers and based on extensive advice with due consideration of equalities impacts. Estimated cost savings were published in the budget documentation: Motability Scheme: reforming tax reliefs - GOV.UK
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