Overview
- Chancellor Rachel Reeves said “We can’t leave welfare untouched” ahead of the 26 November Autumn Budget, signalling further welfare reforms.
- The Times reported that options under consideration include removing VAT and Insurance Premium Tax exemptions on Motability leases and excluding premium brands such as BMW and Mercedes, with the Treasury declining to comment on speculation.
- Motability says the scheme serves about 815,000 customers across the UK, and reports indicate luxury models account for roughly five per cent of vehicles.
- Disability groups including Scope and Transport for All warned the reported changes would raise costs, reduce access to adapted transport and risk greater isolation for disabled people.
- Broader moves in train include a consultation on raising the minimum age for the Universal Credit health element, continuing plans to abolish the Work Capability Assessment, and a PIP review led by Sir Stephen Timms due to report in autumn 2026.