DWP urged to review these changes in new benefit system overhaul

Tory MP Danny Kruger is urging the Department for Work and Pensions (DWP) to re-examine the Motability scheme as part of its expected benefits overhaul.

Kruger, who represents East Wiltshire, said: "One area where the Government do not seem to be looking for savings is in the Motability scheme. It was supposed to help physically disabled people get around, but now we have 100,000 new people a year joining the scheme, many of them not physically disabled at all."

Kruger highlighted that one-fifth of new cars are obtained through the Motability scheme, placing a nearly £3 billion annual burden on taxpayers.

Kruger appealed: "I know that the Minister will blame [the Conservative party] for the system, but the fact is that the Government are not even looking at Motability. They have had a year, and it is their policy now. Will the Minister commit to a proper review of the Motability scheme, and if not, why not?".

In response, Social Security and Disability Minister Sir Stephen Timms said: "I am not sure whether the shadow Minister wants me to go further or not so far - he seems to be facing both ways. He is right that we are not at this point proposing any changes to the Motability scheme."

The Motability Scheme, which allows people receiving a disability benefit to lease a new car, wheelchair-accessible vehicle, scooter or powered wheelchair, now offers over 800 vehicles to choose from, as reported by the Daily Record.

In addition to a new vehicle, customers also receive insurance, breakdown assistance, servicing, maintenance, tyres and windscreen repairs as part of the package.

It's important to clarify that the DWP does not manage the scheme, but rather facilitates a direct transfer to Motability of a claimant's payment, either in part or in full, if they choose to join the nationwide initiative.

The higher rate of the mobility component of Personal Independence Payment (PIP) is worth £77.05 per week, equating to roughly £308.20 every four-week payment period.

Motability Operations, the charity behind the Motability Scheme, states that there are currently 815,000 customers across the UK.

PIP reforms

There are currently 3.7 million people across Great Britain claiming for PIP, however, the Government expects that figure to rise by a further 750,000 to 4m by the end of the decade and has proposed a raft of new measures to make the benefit sustainable for future generations.

A package of reforms to overhaul the welfare system has been proposed, including:

• Scrapping the Work Capability Assessment to end the process that drives people into dependency, delivering on the UK Government's manifesto commitment to reform or replace it.
• Legislating to protect those on health and disability benefits from reassessment or losing their payments if they take a chance on work.
• Providing improved employment support backed by £1 billion including new tailored support conversations for people on health and disability benefits to break down barriers and unlock work.
• Ending reassessments for disabled people who will never be able to work and people with lifelong conditions to ensure they can live with dignity and security.

To ensure the welfare system is available for those with the greatest needs now and in the future, the UK Government has made decisions to improve its sustainability and protect those who need it most.

These include:

• Targeting PIP for those with higher needs by changing the eligibility requirement to a minimum score of four on at least one of the daily living activities to receive the daily living element of the benefit, in addition to the existing eligibility criteria.
• Rebalancing payment levels in Universal Credit to improve the Standard Allowance.
• Consulting on delaying access to the health element of Universal Credit until someone is aged 22 and reinvesting savings into work support and training opportunities through the Youth Guarantee.
• Reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and are not written off.

The DWP also launched an online consultation on the new proposals to coincide with the publication of the Green paper. The consultation can be completed by anyone and is open until 11.59pm on Monday June 30, 2025 - you can find full details on GOV.UK here.