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Motability Tax Breaks Reportedly Targeted as MPs Push Tougher PIP Rules Before Budget

An official review is testing whether PIP remains fair for claimants versus taxpayers.

Overview

  • Reports say the Chancellor is considering removing VAT and insurance premium tax exemptions worth about £1 billion, which Motability estimates could add roughly £3,000 to an average vehicle lease.
  • Conservative MPs led by Helen Whately urged tighter eligibility that excludes some lower‑level mental health conditions and limits Motability access to people with what they term serious disabilities.
  • Rebecca Smith called for a return to more in‑person assessments, citing claims that about 90% now occur by phone and alleging online coaching of applicants.
  • The government has launched the Timms Review to examine PIP’s future, while a DWP minister questioned the opposition motion’s lack of clarity over what counts as a serious disability.
  • Motability’s chief executive said customers are worried by speculation and pledged to try to absorb costs if changes occur, with final decisions expected in the Autumn Budget on November 26.