Motability is not a luxury, Scottish disabled people say, as post-tax hike negotiations continue

Disabled people in Scotland have made it clear that the Motability vehicle scheme is essential to their independence and is not a “luxury”, particularly if they live in a rural area, a new report has found.

The Motability is not a Luxury report by Inclusion Scotland was published as uncertainty remains over whether major changes to the scheme in the rest of the UK – which have caused “serious concerns” among disabled customers – will also soon be introduced in Scotland, which has its own version of Motability.

Those changes were announced by Motability after chancellor Rachel Reeves used last November’s budget to impose VAT at 20 per cent and remove the current 12 per cent insurance premium tax exemption on most new Motability leases from next month.

This led Motability to announce earlier this year that it would meet some of these extra costs by announcing changes to new leases, including a lower mileage allowance, increased excess mileage charges, and limiting tyre replacements, from Wednesday (1 July).

Motability is currently in discussion with the Scottish government over whether these or other changes will be introduced in Scotland.

Motability has already removed “premium brand” vehicles from the scheme across the UK, a change which also applies to Scotland.

Earlier this month, the Scottish government’s social justice cabinet secretary, Shirley-Anne Somerville, said some of the changes would not be introduced in Scotland on 1 July but warned that “there may need to be future changes”.

This is because Motability in Scotland is run by Social Security Scotland through the Accessible Vehicles and Equipment (AVE) scheme, which is delivered and managed by Motability Operations, the company which also runs the scheme in the rest of the UK.

Only the small number of disabled people living in Scotland who still receive personal independence payment or disability living allowance through the UK government – rather than the Scottish equivalents of those benefits – will face the Motability changes on new leases from 1 July.

Those who responded to a survey carried out by Inclusion Scotland said in this week’s new report that Motability enabled them to work, attend healthcare appointments, take part in education, and stay connected to their communities.

But many raised concerns about the impact of the possible future changes to the scheme in Scotland.

Among the report’s demands are for the UK government to “desist” from describing larger cars that are essential to many disabled people on the scheme as a “luxury”, and for it to “treat the scheme as critical infrastructure for independent living, not just discretionary support”.

It also calls on the Scottish government to mitigate the impact of any changes that are eventually introduced in Scotland, and for both the UK and Scottish governments to protect Motability customers in rural communities.

Many survey respondents said they would be isolated or unable to leave their homes without their Motability vehicle, because public transport is often inaccessible or unreliable.

And many also raised concerns about affordability and rising costs, if and when the changes are introduced, against a backdrop of a cost-of-living crisis.

One disabled customer said: “I might not be able to leave the house as I won’t be able to afford the vehicle.”

Another said: “If I had the mobility scheme taken off me, I think my mental state would go downhill very fast.”

Another respondent said: “I’m 62, my mobility is severely compromised…if I didn’t have the car, I wouldn’t go out of the house at all!

“It saved my life! This scheme is incredibly supportive.

“In a world where being disabled has so many hard edges and things that don’t fit, Motability has provided a supportive way of getting around, which is especially important to me now I’m unable to earn an income.”

Inclusion Scotland says in the report that some survey respondents believed decisions by politicians “were being influenced by sensationalised narratives around benefits misuse and a limited public understanding of disability, often amplified through social media”.

Inclusion Scotland concluded: “Overall, there is deep concern that although the scheme is important, it is becoming harder to access and sustain.

“This is because decisions are being made on the basis of cost rather than disabled people’s needs.

“It is clear from the survey findings that the sensible approach would be to co-produce changes to the scheme with disabled people and protect access, affordability, choice, and independence.”

It called for greater clarity and more involvement by disabled people in decisions about the Motability scheme in Scotland.

A spokesperson for Motability Operations said: “We know many disabled people and their families will be worried about the increase in the cost of a lease due to the new UK government tax costs being applied to the Motability scheme from July.

“The independence the scheme provides is essential to daily life, helping disabled people live independently, which is why we want to keep as many customers moving as possible while making sure the scheme is sustainable in the long term.

“New UK government tax costs on the Motability scheme from July would mean an average £1,100 increase to lease prices from July if no changes were made, which we know would be unaffordable for many.

“We have worked hard to reduce the impact on customers, with changes to the mileage allowance helping to reduce the overall cost of a lease.

“Around three in four customers currently travel within the new mileage allowance.

“However, we know some will be impacted more than others, and we will introduce an exceptions process for limited circumstances where customers have a particular need.

“We are working with the Scottish government to determine what the changes to the scheme’s tax arrangements mean for customers who receive a qualifying allowance through Social Security Scotland.

“Customers whose lease is due for renewal will be able to renew under their current lease package while these arrangements are being finalised.”