The Department for Work and Pensions (DWP) has announced an immediate and significant change to the Motability Scheme, scrapping a key Personal Independence Payment (PIP) perk as part of the Autumn Budget.
Luxury Brands Removed Immediately
In a major shift, luxury car brands will no longer be available for Motability recipients. The government has confirmed that vehicles from manufacturers such as BMW, Mercedes, Audi, Lexus, and Alfa Romeo have been removed from the scheme with immediate effect.
This move comes as the new Labour government seeks to redirect spending towards British industry. Instead of luxury imports, the scheme will now focus on increasing the share of vehicles built in the UK.
Boost for British Manufacturing
An official announcement from Motability outlined the new direction: "In the short term, Motability Operations will work closely with UK-based manufacturers to increase the share of British-built vehicles leased by customers, while maintaining affordability, choice and quality."
The scheme has set ambitious targets, aiming to have 25% of cars on the scheme UK-built by 2030, a substantial increase from the current 7%. As an immediate step, the number of British-built Nissan vehicles leased through the scheme will double to around 40,000.
Labour Party Chancellor Rachel Reeves defended the changes, stating: "Backing British car manufacturing will support thousands of well-paid, skilled jobs and is exactly the long-term investment our Modern Industrial Strategy delivers."
Broader PIP Review Underway
These changes coincide with a wider review of the PIP system launched by Labour Party cabinet minister Stephen Timms. The review comes amid growing concerns about the ballooning welfare bill.
However, Mr Timms has provided some reassurance, confirming last month that "there will be no changes to the eligibility conditions for the mobility component of the personal independence payment" until his review concludes in approximately one year's time.
In tomorrow's Budget, Chancellor Reeves is also expected to launch a fresh crackdown on benefit fraud while simultaneously lifting the two-child limit for universal credit at a cost of £3 billion. This dual approach appears designed to address criticism over rising welfare spending while supporting families.
