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Government Rules Out PIP Eligibility Changes Until 2026 as Motability Speculation Grows

Reports of Motability tax or brand restrictions remain unconfirmed by the Treasury.

Overview

  • Social security minister Sir Stephen Timms told MPs there will be no changes to Personal Independence Payment eligibility, including the mobility component, before his review reports in autumn 2026.
  • The Timms Review will be co-produced with disabled people and will examine PIP assessments and how entitlement is calculated, with the mobility element explicitly in scope.
  • The Times reported that Chancellor Rachel Reeves is considering ending VAT and Insurance Premium Tax relief on Motability leases and removing premium brands, with potential savings of about £1 billion.
  • HM Treasury said it will not comment on speculation about possible tax changes outside formal fiscal events ahead of the Autumn Budget.
  • Disability groups and Motability warned that removing tax relief could add thousands of pounds to vehicle costs and curb independence and employment, and MPs called for a full impact assessment before any cuts.