The contentious Motability charity program distributed over £500 million of public funds as incentives for benefit recipients to purchase new vehicles, The Mail exposes.
Each claimant receives £750, which can be deposited directly into their bank account without facing any government recovery if they opt for a simpler vehicle. Alternatively, this amount can contribute toward the initial payment of a higher-end model.
The Motability program obtains funds directly from taxpayers through benefit recipients who qualify for higher rates based on their mobility needs. These individuals can trade their weekly allowance for a new car, with the higher rate being sourced via either the Personal Independence Payment or Disability Living Allowance.
An investigation conducted by Mail has revealed that Motability distributed £540.9 million in 'new vehicle payments' to approximately 748,000 individuals from 2022 onwards.
The charity's initiative for vehicle payments—which was active from 2022 up till January of this year—enabled it to boost its clientele by 170,000 individuals last year, reaching an unprecedented total of 815,000 customers. This means approximately one out of every five newly acquired vehicles in Britain were bought via their program.
Motability, an organization providing cars to individuals with eligible disabilities, faced criticism following reports by the Mail indicating it held over £4 billion in reserves while still receiving at least £2.5 billion annually from the Department for Work and Pensions.
Established as a charitable organization in 1977, Motability was created to assist individuals with physical disabilities in mobility or to supply vehicles equipped with required modifications.
Established as a charitable organization in 1977, Motability was created to assist individuals with physical impairments in mobility or to supply vehicles equipped with required modifications.
However, it turned out that an unprecedented number of people are utilizing this program while simultaneously receiving benefits for issues such as ADHD, depression, and even obesity.
As part of the deal, recipients of disability benefits—set at £75.75 per week—and an initial sum of £7,999 can leave with either a £50,000 BMW i4 M Sport or a Mercedes-Benz CLA Coupe. This offer also includes comprehensive coverage such as insurance, road tax, maintenance services, roadside assistance, and repairs for tires and windscreens.
According to research conducted by the Taxpayers' Alliance, the count of individuals qualified for higher-level disability benefits—and consequently entitled to a Motability vehicle—has surged by 439% from 2016 levels.
William Yarwood from the TaxPayers' Alliance stated, "Taxpayers are essentially being misled by the Motability scheme. Besides having access to a premium electric vehicle at a reduced cost along with exceptions on VAT and insurance, the government is now enticing welfare recipients to join this program."
'Ministers should closely examine the Motability program and implement stricter regulations before the expenses escalate.'
A representative from Motability stated, "The revenue generated from the sale of pre-owned vehicles is reinvested into the program. We utilized profits that exceeded our expectations to enhance transportation options for individuals with disabilities."
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