Newly released statistics have revealed the significant scale of a government-backed scheme that provides new cars to people on disability benefits, with taxpayers footing the bill for up to a third of all new car sales in some UK regions.
Regional Disparities in Motability Uptake
The data, uncovered by the Conservative Party, shows that in the 2024-25 financial year, some 277,645 new cars purchased in England and Wales were acquired through the Motability scheme. This represents 16 per cent of all car sales nationally, equating to roughly one in every six new vehicles.
However, the figures show stark regional variations. The highest uptake was in Wales, where 33 per cent of all new car sales were conducted via Motability. This was followed by the North East of England at 26 per cent, and London at 24 per cent.
The scheme allows individuals who receive the enhanced rate of the mobility component of Personal Independence Payment (PIP) to exchange their weekly allowance to lease a brand new car, scooter, or powered wheelchair. The vehicles are also exempt from VAT and insurance premium tax.
Political Scrutiny and Recent Reforms
The programme has faced mounting political criticism for potentially being open to abuse, with concerns that individuals with less visible conditions, such as anxiety or depression, can access high-specification vehicles funded by the public purse.
Tory leader Kemi Badenoch told The Sun: 'Welfare isn't working. Instead of a system where those who genuinely need support can access it, we have created one where it is all too easy to abuse the generosity of hardworking people.'
In a major recent change, Chancellor Rachel Reeves intervened last month, labelling it 'unfair' to lease luxury models to benefits claimants. Following her criticism, the Motability scheme announced it would 'immediately' stop offering cars from BMW, Mercedes, Audi, Alfa Romeo, and Lexus.
This means current claimants driving those brands will have to switch to another manufacturer when they next change their vehicle under the scheme.
Scheme Details and Economic Impact
While the scheme is vital for many disabled people to access work, education, and healthcare, the statistics show that only 10 per cent of the 300,000 vehicles leased annually are adapted for wheelchairs. Furthermore, 85 per cent of claimants make additional top-up payments to secure higher-end models.
Motability has stated that the scheme operates off the government's balance sheet and argues it delivers significant economic value. A spokesperson said: 'The Scheme... delivers real value to the UK economy – generating £1.50 in economic benefit for every £1 of disability allowance spent.'
The organisation has also pledged to increase its use of British-made cars, aiming for 2035 to be the first year where half of all leased vehicles are UK-manufactured.
Analysis of PIP data shows nearly ten per cent of people in some areas are eligible for the scheme. Blaenau Gwent in Wales has the highest proportion, with 7.4 per cent of its population receiving the enhanced PIP mobility rate.
A Labour spokesman stated: 'This Government is already taking tough action to reform the Motability scheme.' The debate continues over the balance between supporting genuine need and ensuring responsible use of public funds.
