Motability stops offering cars from ‘premium’ brands ahead of Budget

The Motability Foundation has announced that it has removed premium brands from its listings ahead of the Budget on Wednesday and amid heavy criticism surrounding the scheme.

For those unaware, the Motability scheme is run by the charity Motability Operations and enables those claiming Personal Independence Payments (PIPs) to exchange their monthly allowance for rental of a brand-new car. These cars are often modified to meet the personal accessibility needs of the driver.

One of the main criticisms of the Motability scheme, which funds roughly 15 per cent of new cars being brought onto the road in the UK, is the ability for customers to select models from premium brands such as BMW and Mercedes. It’s worth pointing out, however, that to hire one of these premium cars, claimants would need to pay out of their own pockets to cover the extra cost.

However, ahead of Chancellor Rachel Reeves’ Autumn Budget, models from posher manufacturers have been removed from the scheme, with the overall aim being that 50 per cent of Motability-leased vehicles will be built in Britain by 2035. 

Motability’s Chief Executive, Andrew Miller, explained how: “The Motability Scheme makes a difference to disabled people’s lives every day and our customers tell us it is a lifeline to freedom and independence. Working with government and the automotive sector, we want to do even more to support the economy and our ambitious commitment should put British car manufacturing into top gear.”

Motability tells Auto Express that it defines premium models as those produced by Alfa Romeo, Audi, BMW, Lexus and Mercedes-Benz; interestingly, Polestar and Volvo vehicles remain available to applicants. 

The move hasn’t been all that well received by disability rights activists; Graham Foster, chief executive of Disabled Motoring UK, told Auto Express that: “This politically motivated decision will be disappointing to some Motability customers who are prepared to pay the extra advanced payments in order to drive the vehicle of their choice. All this does is reduce the range of vehicles on the scheme and customer choice”.

In the meantime, Reeves will be preparing to announce details of this year’s Budget on Wednesday, with items such as a pay-per-mile tax for EVs, as well as an extension to the Electric Car Grant expected to feature heavily.

Ahead of the big fiscal event, the Chancellor said: “Backing British car manufacturing will support thousands of well paid, skilled jobs and is exactly the long-term investment our Modern Industrial Strategy delivers.”

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