The Department for Work and Pensions (DWP) has clarified that it does not hold direct responsibility for policies that could automatically terminate a Motability Scheme car lease. In a written response to a parliamentary question, DWP minister Sir Stephen Timms said that responsibility for the terms and administration of the Scheme, including policies regarding the adequacy of notice periods, sits with Motability Foundation and its Board of Governors.
MP raises concerns over lease cancellations
Shivani Raja, the Labour MP for Leicester East, had asked the Secretary of State for Transport what discussions his department has held with Motability Operations regarding policies that automatically terminate a beneficiary’s existing car lease upon the cancellation of an unfulfilled new vehicle order due to adaptation incompatibility. Raja also asked whether the DWP will make an assessment of the adequacy of the notice periods provided by Motability Operations to disabled customers.
In his response, Timms stated that the DWP meets regularly with Motability Foundation, the independent charity with responsibility for overseeing the Scheme, to discuss the Scheme’s operation. He added that Motability Operations is the commercial organisation that delivers the Motability Scheme to 915,000 disabled people across the UK.
How the Motability Scheme works
The Motability Scheme allows people who receive a qualifying mobility allowance to lease a vehicle. To apply, an individual must receive one of the qualifying mobility allowances and have at least 12 months left on their award. Qualifying benefits include Personal Independence Payment (PIP) and Disability Living Allowance (DLA).
Motability Operations has responded to the concerns, stating: "The Motability Scheme connects disabled people to freedom and independence by providing access to an affordable, accessible vehicle. There is no automatic policy to end a lease because a replacement is cancelled and we can provide support for customers if there is an issue with their order."
Clarification and next steps
The DWP’s response makes clear that it does not directly oversee Motability Operations’ lease termination policies. Instead, Motability Foundation, as the independent charity, is responsible for the Scheme’s terms and administration. The DWP’s regular meetings with Motability Foundation are the primary channel for discussing the Scheme’s operation.
For the 915,000 disabled people currently using the Scheme, the clarification means that any concerns about lease terminations or notice periods should be directed to Motability Operations or Motability Foundation, rather than the DWP. The response does not indicate any immediate change to existing policies, but it does confirm that the government is aware of the issue and is engaging with the charity on the matter.
