Overview
- Chancellor Rachel Reeves is expected to set out benefit uprating and wider welfare measures in the Autumn Budget on November 26, according to multiple reports.
- Reports suggest the Treasury is considering removing VAT and insurance premium tax exemptions from Motability, a move estimated at £1 billion that could add about £3,000 to average lease costs.
- Conservative MPs led by Helen Whately have urged tighter eligibility for Motability to people with what they call serious disabilities, more face-to-face assessments, and an end to benefits for certain lower-level conditions.
- Official documents indicate the new review of Personal Independence Payment will examine whether the system is fair and fit for purpose, with no mandate to cut the benefit’s cost.
- Motability highlights concern over speculation and says it would work to absorb any new costs, as coverage notes the scheme’s scale at roughly £2.8 billion last year with about one in five new cars registered through it.