Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps his Department is taking to ensure that recent changes to the Motability Scheme, including the removal of VAT zero-rating on advance payments and the introduction of Insurance Premium Tax on certain vehicles, do not disproportionately impact disabled individuals in rural areas who require higher-specification vehicles capable of handling adverse road conditions.
The Motability Scheme is a lifeline for many disabled people and families, supporting their independence by enabling them to lease a car, wheelchair accessible vehicle, scooter or powered wheelchair in exchange for an eligible disability benefit allowance.
The Scheme will continue to offer a choice of vehicles, to meet a range of accessibility needs. The changes announced at the budget will not apply to current leases or wheelchair adapted vehicles, and the Scheme will continue to offer vehicles which require no advance payment, meaning that people will be able to access a suitable vehicle using only their qualifying disability benefit. The Scheme will continue to offer a full ‘peace of mind package’ – including insurance and UK breakdown cover – and provide means-tested grants to support eligible people who would otherwise struggle to afford the advance payment.
Proposed changes to the leasing package will undergo disability impact assessment by the Motability Foundation, which oversees the Scheme.