The Department for Work and Pensions (DWP) has announced an immediate overhaul of the Motability Scheme, which helps people receiving Personal Independence Payment (PIP) access affordable vehicles.
Which Cars Are Being Removed?
In a significant shift, luxury and premium-brand cars are being axed from the scheme with immediate effect. The list of manufacturers being removed includes BMW, Mercedes, Audi, Lexus, and Alfa Romeo.
Motability Operations, which runs the scheme, stated this decision was made to "focus on vehicles that meet disabled people’s needs and represent value and purpose." These premium brands constituted approximately 40,000 vehicles, or about 5%, of the 800,000-strong Motability fleet.
Boost for British Manufacturing and Jobs
The move is positioned as a strategic boost for the UK automotive industry. Chancellor Rachel Reeves of the Labour Party commented that the changes would "support thousands of well-paid, skilled jobs" ahead of the budget announcement.
Motability has set an ambitious target: it hopes that 50% of the vehicles it offers will come from British factories by 2035. Andrew Miller, Chief Executive of Motability Operations, said this commitment "should put British car manufacturing into top gear."
Nissan is set to be an early beneficiary, with the number of UK-built vehicles purchased by Motability expected to double. James Taylor, managing director of Nissan GB, welcomed the move, recognising the scheme's crucial role in providing mobility and independence.
What Choices Remain for Scheme Users?
Despite the removal of luxury brands, Motability assures users that a wide variety of vehicles remains available. The scheme still offers:
- More than 840 different vehicles from around 30 manufacturers.
- Approximately 40 vehicles with no Advance Payment.
- Nearly 100 vehicles with an Advance Payment under £500.
- The same choice of larger 7-seater cars from 10 different manufacturers.
This restructuring aims to balance the needs of disabled users with a renewed investment in the UK's industrial base, marking a pivotal change for a key support scheme.
