Overview
- Media reports say the Chancellor is considering measures to raise about £1 billion from the Motability Scheme ahead of the 26 November Autumn Budget, though no formal decision has been announced.
- A written parliamentary response confirms £3,074,920,421.67 in benefits were transferred to Motability in 2024–25, an increase of nearly £275 million on the previous year.
- The Department for Work and Pensions does not directly fund the scheme, which benefits from zero-rate VAT on qualifying vehicle hire and sales and zero-rate Insurance Premium Tax on scheme policies.
- Motability says customers’ prices are fixed for the remainder of existing leases and it will keep users informed if policy changes are confirmed.
- Around 815,000 to 860,000 people use the all-inclusive leasing package, and disability advocates warn that scaling back support would curb independence and access to work, healthcare and daily life.