The company providing cars to disabled people has added another 100,000 benefits claimants to the scheme in the past year, the latest figures show.
It comes amid growing concern that the “out of control” Motability scheme is being abused by some disability benefits claimants and their friends and family.
Motability Operations has been under pressure to tackle the fraudulent use of its vehicles, which are leased out in exchange for personal independence payment (PIP) money.
The latest half-year report from the company running the Motability scheme has revealed that another 97,000 people have joined in the past year – bringing its total customer base to 860,000.
It has helped the company’s revenue rise by 7 per cent to almost £3.6bn for the six-month period until March 2025.
Critics say the scheme – which accounted for one-in-five of all new cars bought in the UK last year – has gotten “far too big” and the company running it has “too much money”.
In some car dealerships, six in every 10 new cars sold are Motability vehicles.
However, disability rights campaigners say the scheme, which can provide adapted cars, is “life-changing” and good value for the taxpayer.
They fear Labour’s controversial plans to cut PIP could see people forced to give up their Motability cars to cover for the loss of benefits money.
The car scheme has expanded alongside the huge growth in claims for PIP – the disability benefit aimed at helping with daily needs and getting around.
The number of PIP claimants has risen 32 per cent, from 2.8 million in 2022 to 3.7 million in 2025. The number of Motability customers has also increased by 32 per cent in the period – from 650,000 in 2022 to 860,000.
Misuse has also been on the rise. The i Paper revealed in March that Motability had removed vehicles from around 11,000 people for abusing the scheme in recent years – rising from almost 2,500 such cases in 2022 to over 5,000 in 2024. One issue is that the scheme is increasingly being exploited by friends and family members of claimants.
William Yarwood, the campaign manager at the TaxPayers’ Alliance, said the “massive jump” in the number of Motability customers in the past 12 months “should cause alarm bells to ring”.
Yarwood said the growing number of people removed showed there was reason to believe the “out of control” scheme was “being gamed”. The Government should review eligibility to “bring the scheme under control”, he added.
Labour peer John Mann – who previously scrutinised the firm’s finances when at the Treasury committee – said Motability Operations was “making too much money”.
“The scheme has got far too big,” Lord Mann told The i Paper. “A proper review should be on the Government’s agenda. It needs tighter criteria. Savings can be made – money that can be returned to the Exchequer.”
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However, disability campaigners have defended the scheme, and said its growth was merely a reflection of the rise in PIP claims in recent years.
Anyone who qualifies for the mobility element of PIP is eligible for a Motability car, so long as they get the highest, “enhanced” rate of this disability benefit.
Vehicles are not free. Disabled people hand over an upfront payment and most or all of their £300 mobility PIP benefit each month in order to lease a car.
Linda Bamford – former convener of an accessibility advisory body to the Scottish Government – said it helps people “retain employment and their independence”.
Work and Pensions Secretary Liz Kendall wants to tighten access to PIP (Photo: Ben Whitley/PA Wire)Fears over PIP cuts
There are fears that Labour’s plans to restrict PIP eligibility could see some disabled benefit claimants lose their Motability car.
Work and Pensions Secretary Liz Kendall has said the Government plans to squeeze eligibility for the daily living part of PIP to cut the welfare bill – but mobility payments will be protected.
However, Bamford warned that some people could be forced to use their mobility payment to cover the daily living losses, and so they would have to give up their car.
“Some people who have just joined the scheme, alongside existing customers, will, without doubt, need to surrender their vehicles as a result of the welfare reforms if voted through,” said Bamford.
Dr Mark Carew, a professor at the International Centre for Evidence in Disability at the London School of Hygiene and Tropical Medicine, has also defended the scheme as good value for the taxpayer.
The expert – also a director at the Disability Policy Centre – previously said it does not cost “anything over and above what goes on PIP” to operate.
Asked about the impact of welfare reforms, Dr Carew told The i Paper it was “understandable” that some PIP claimants “are worried about losing vital support and having to make hard choices”.
Motability’s money
Motability’s revenue for the six months to March rose 7 per cent to £3.56bn. It took in around £1.6bn in benefits money during that period, with the rest coming from the resale of vehicles.
However, the company also reported an underlying pre-tax loss of £75m. It cited the cost of investment in Electric Vehicles (EVs), and the staggered costs of an incentive scheme which saw new customers given £750 – which ended last year.
A spokesperson for Motability Operations said the scheme provides disabled people with “the independence to access work, education and healthcare”.
They said growth in the scheme was “slowing” compared to the previous years, and claimed their own figures showed its “declining share of the UK new car market – from 20 per cent to 15 per cent”.
Motability’s large reserves ensures the scheme “remains financially sustainable and shields our customers from wider market volatility”, they added.
The Government has been approached for comment.
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