Rachel Reeves plots £1bn cut to Motability scheme which lets disability claimants access cars
Cuts to disability car scheme could save government £1 billion
- Rachel Reeves is reportedly planning to restrict disabled people’s access to cars through the Motability benefit scheme in an effort to save £1bn.
- Proposed reforms include axing £1bn worth of annual tax breaks, such as VAT and insurance premium tax exemptions, and removing luxury vehicles like Mercedes and BMWs from the scheme.
- The changes are being considered to save money and boost public confidence in the welfare system, as the Chancellor faces pressure to find £22bn in cuts or tax hikes for the November Budget.
- Disability groups, including Transport for All and Scope, have criticised the potential reforms, warning they would make life more expensive for disabled people and restrict their freedom.
- Critics like Kemi Badenoch and Reform UK have argued that the Motability scheme is being exploited by some, with spending on it having 'spiralled out of control'.