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    Motability gives 'needs of the disabled person' update as it launches 'Special Investigations Unit'

    1 day ago

    Motability is establishing a new 'Special Investigations Unit' to reclaim vehicles from individuals misusing them. This action comes after the Labour party limited the number of cars available in the scheme, leading to the removal of luxury brands such as BMW and Mercedes. Sir Stephen Timms, Minister of State (Department for Work and Pensions), announced in the House of Commons this week that certain 'tax reliefs' will be abolished next July. The Government has confirmed that VAT will be applied to Advance Payments and Insurance Premium Tax will be imposed on Scheme leases from July 2026. Motability has warned that these changes will increase the cost of a lease on the Scheme, predicting that the average Advance Payment (upfront cost) of a vehicle will rise by approximately £400 over the three-year package. In response to the Budget's removal of VAT concessions, Motability also declared a crackdown. This follows criticism over the misuse of the Blue Badge scheme. In October, Cabinet Office Minister Josh Simons expressed his shock at discovering an illegal underground market for Blue Badges, which he described as embodying "old-fashioned courtesy and consideration". Following a government probe, tens of thousands of Blue Badges originally issued to deceased individuals were pulled from circulation after it came to light they were being flogged for substantial sums. In response, Motability has revealed it's drafted in 80 investigators to crack down on vehicles being used improperly. A Motability spokesperson explained: "To more strongly combat the issue of misuse, the Motability Scheme is creating a new Special Investigations Unit. While the overall rate of misuse has remained stable, and the vast majority of customers use their vehicles in the way they are intended, the growth in customer numbers means more cases are being investigated". They added: "There are now around 80 people who are dedicated to tackling misuse of Scheme vehicles who join the newly formed Unit. Motability Operations also plans to strengthen data-sharing arrangements with government and police agencies to enable quicker, more effective action where misuse is identified." Motability describes misues as actions that breach the agreed terms and conditions of the Motability Scheme, which gives disabled people access to vehicles and gives examples of misuse: Ministers have announced that from July 2026, VAT will be slapped on Advance Payments whilst Insurance Premium Tax will be charged on Scheme leases. Motability has warned that the change will push up leasing costs on the Scheme, with the organisation stating: 'we anticipate the average Advance Payment (upfront cost) of a vehicle, will increase by around £400 over the three-year package'. When questioned by Labour's Shaun Davies about what measures he is taking to enhance the scheme, Sir Stephen responded: "Changes announced at the Budget will improve value for money for taxpayers while ensuring that the Motability scheme continues to provide outstanding support for disabled people." Mr Davies emphasised the scheme's importance to many people's lives, saying: "The Motability scheme stems from the vital principle that people with disabilities should be able to live a dignified and independent life. I have heard from several constituents about how accessible cars can help them into work and healthcare, which I welcome, but I have also heard from a number of others about those with questionable conditions being provided with cars that, quite simply, the average working family could not afford." Sir Stephen responded: "I do agree with my hon. Friend, and I would be happy to meet him. Motability is an important scheme that does an important job. Some tax reliefs will be removed in July. Existing leases will not be affected, and neither will wheelchair-adapted vehicles. There will still be vehicles, with no up-front payment, that are affordable solely through the mobility component of personal independence payment, so the scheme will continue to do a great job but will give better value for money for taxpayers." Addressing the changes announced in the November budget, Motability stated: "The tax changes will increase the cost of a lease on the Scheme and we anticipate the average Advance Payment (upfront cost) of a vehicle, will increase by around £400 over the three-year package. We will continue to provide a range of around 40 to 50 vehicles available to lease with no upfront payment. "Changes to the Scheme's package are expected to be introduced from July 2026. Motability Operations, which runs the Scheme, will begin engaging with customers about the proposed changes in spring 2026. Proposed changes to the leasing package will undergo disability impact assessment by the Motability Foundation, which oversees the Scheme, before any changes are approved, announced and implemented. As the Scheme evolves and we fully understand the impacts changes may have on disabled people, the Foundation will also need to consider how its grant programmes best support those most in need." To watch the debate click here. For more information on Motability misuse, click here.
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