Overview
- Conservative MPs led by Helen Whately formally urged changes to PIP and the Motability scheme so only people with “serious disabilities” qualify, with calls to exclude some lower‑level mental health conditions and increase face‑to‑face assessments.
- Pre‑Budget reporting says the Chancellor is considering removing VAT and insurance premium tax exemptions from Motability and limiting access to high‑end models, with any decisions expected at the 26 November Autumn Budget and the Treasury not commenting on specifics.
- Motability Operations warned that losing tax reliefs could push average advance payments up by roughly £3,000 to £6,500, while chief executive Nigel Fletcher said the organisation would work to absorb costs and acknowledged customer anxiety over the speculation.
- Former DWP Motability policy head Matt Ryder proposed ending tax breaks, offering second‑hand cars, opening the scheme to competition, and tightening mobility eligibility via the PIP review, arguing the operator could absorb more of any tax hit.
- Think‑tank analyses highlight sharp growth in PIP caseloads since the pandemic and rising welfare costs, as the government points to the ongoing Timms Review to assess PIP’s future design rather than to deliver immediate savings.