A Motability user has accused the Government of “penalising the disabled” by announcing changes to the system rather than addressing real issues within the scheme.
Anjna Patel has rheumatoid arthritis, which affects 90 per cent of her body, making walking and standing for any length of time extremely difficult. She has to go to hospital every four weeks for an infusion to maintain her limited mobility.
The 68-year-old from Staffordshire relies on her car, leased through Motability, to give her independence, transport to hospital, and help maintain a social life.
But she said the latest changes to Motability, outlined by the Chancellor in last Wednesday’s Budget, will affect her ability to afford the scheme and in turn, her quality of life.
Under changes announced in the budget, the Chancellor ended some tax reliefs worth around £300m a year to the company responsible for the finance, administration and maintenance of the Motability Scheme for disabled people on benefits.
HMRC acknowledged the changes are “likely to indirectly impact” disabled people leasing vehicles, with Motability saying its customers could be forced to pay £400 more for their cars.
Ms Patel said she understands there is a case for tightening measures around the use of Motability but this should not come at a cost to those who genuinely need it.
Under the Chancellor’s Budget reforms:
Insurance Premium Tax (IPT) will be levied on the all-inclusive insurance cover provided by the Motability Scheme. VAT relief is removed from upfront advanced payments for new Motability leases from July 2026. It means these payments will be subject to the standard 20 per cent VAT rate.According to the Government’s Budget forecasts, these changes will save more than £1bn over the next five years.
Ms Patel told The i Paper: “The government should be addressing the abuse, not penalising the disabled.
“They should be looking at things like people with children at a different address, who are using the Motability vehicle.
“Instead, they are taking an easy way out. I think it’s going to put so many disabled people into a category of destitution and I don’t think that is fair.”
Motability Operations, which runs the scheme, said “these tax changes will mean the scheme will become more expensive for disabled people”.
Nigel Fletcher, chief executive of the charity Motability Foundation, which invests in research, transport programmes and support, said the changes to tax reliefs imposed on the scheme mean it will now “need to evolve”.
Ms Patel said her car is not a luxury, but rather a necessity for her (Photo: Anjna Patel)But he added: “We are working hard to minimise price increases for customers and are taking steps to assess the impact of potential changes to the leasing package.”
Ahead of the tax changes, Motability Operations had already announced it would stop leasing high-end models such as BMWs, Audis and Mercedes.
About 5 per cent of the Motability fleet, around 40,000 cars, are luxury models from BMW, Audi and Mercedes-Benz. There are around 860,000 people using the scheme overall.
Ms Patel said her vehicle, a Hyundai SUV up for renewal in February, is at the higher end of those leased because it has adaptations she needs in order to be able to drive.
“I can’t use a key, my fingers are not agile enough, so I have a push start button in the car”, she said. “I have a heated steering wheel to keep my hands from seizing up – it’s a safety issue. It’s an automatic.
“And I have an SUV because it is higher up, it allows me to get in and out of my car.”
“It’s not a luxury, it’s a necessity. These are the types of car that provide me with some of the things I need to use the scheme.”
At present, she has to make an upfront advanced payment of £4,000 for her type of car, on top of her monthly payment which is met by her mobility allowance. She has spent the past three years saving for the £4,000 cost.
But she said the changes to tax relief could greatly increase the upfront cost for the type of car she needs, in future.
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She said: “I will have to make cuts somewhere to find the extra money.
“Drivers like me, without a car, don’t have quality of life.
“People don’t think about how it may affect your life, your mental health and that has a knock-on effect on the NHS.”
She said her disability means using public transport is not really a viable option, particularly outside of London where the network is less comprehensive.
Graham Footer, chief executive of Disabled Motoring UK, told The i Paper: “Motability customers will be deeply disappointed by the changes to the Motability scheme, which will now increase the financial burden on their customers.
“Motability customers that will be impacted the most will be those who are prepared to pay the extra advanced payments in order to drive a vehicle of their choice, which is appropriate for their needs.
“Taking premium brands out of the scheme is unnecessary and counterproductive.
“All this does is reduce the range of vehicles on the scheme and customer choice.
“Let’s not forget that Motability customers pay an advanced payment to cover the costs of leasing those premium brands as part of the lease agreement.”
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Motability Operations said this week to combat the issue of misuse it is” “creating a new Special Investigations Unit”, with around 80 people dedicated to tackling misuse of Scheme vehicles.
It also plans to strengthen data-sharing arrangements with government and police agencies to enable quicker, more effective action where misuse is identified.
A Government spokesperson told The i Paper: “Motability customers will still be able to lease a car with just their qualifying disability benefit, as there will still be cars available through the scheme which require no advance payment.
“As well as ensuring disabled people can access vehicles, we’re also committed to reforming Motability and saving the taxpayer £1bn over five years.”
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