Minister gives update on Motability car ‘eligibility’ amid PIP restriction plans

Rachel Reeves is said to be considering changes to the Motability scheme later this month

Downing Street has assured that ministers will “always scrutinise spending of taxpayers’ money”, following the Transport Secretary’s suggestion that access to “luxury” cars through a vehicle leasing scheme for people with disabilities could be restricted.

The Motability scheme allows personal independence payment claimants with severe mobility issues to lease a new vehicle, provided they receive the higher mobility rate of the benefit.

Chancellor Rachel Reeves is reportedly considering changes to the scheme, in light of reports that some claimants have been able to lease high-end cars such as Mercedes and BMWs.

Transport Secretary Heidi Alexander was questioned about potential cutbacks to the scheme this week. Speaking to LBC, she said: “I think that the Motability scheme provides really important support to people who do have mobility needs. I think some of the cars that people have been able to access… there’s some luxury models.

“I think we need to make sure that the scheme is always going to be there for the people who genuinely need it, and we also need to make sure that we’re offering the taxpayer value for money in the way that that scheme operates, and if that means that models such as really high-end cars, Mercedes, BMW, aren’t available on that scheme, then that’s something I would be comfortable with.”

Downing Street refused to be drawn on Ms Alexander’s suggestion that she would back premium car models being stripped from the scheme.

“This is Budget speculation. I’m not going to get ahead of that,” the Prime Minister’s official spokesman said.

He added: “Clearly, we will always scrutinise spending of taxpayers’ money, and that is a guiding principle of the work we do as a Government.”

Multiple newspapers over the weekend claimed that Ms Reeves intends to prevent people claiming sickness benefits from accessing the Motability scheme.

The Chancellor is also reportedly mulling over cutting access to luxury vehicles through the programme, alongside premium insurance and breakdown cover.

This is understood to stem from worries that providing a high-end motoring experience to scheme users might damage broader public trust in the benefits system.