I can understand why the Motability Scheme, which I run, has become a proxy for a welfare state that has surged in recent years. But I am proud of what we do to support more than 800,000 disabled people to stay connected to work, education, healthcare and wider society.
The vehicle leasing scheme we deliver helps the welfare-to-work transition: our customers work on average 14 hours a week more than non-customers, which equates to around £500 million in additional wages. Like this newspaper, we applaud the decision by Liz Kendall, the work and pensions secretary, to “grasp the nettle” of welfare reform.
We know from nearly 50 years of working with some of society’s most in need that a lack of transport can be a barrier to work. Ensuring continued mobility is key to increasing economic participation, growth and reducing long-term welfare dependency — key goals of the government reforms.
Not everyone on the scheme can work but one in five say their vehicle has helped them find or stay in employment. Independent analysis shows the scheme contributes £4.3 billion to UK GDP annually. This means that for every £1 of disability allowance, £1.50 goes back into the economy, supporting 34,000 jobs across the UK.
Commentary this week has focused on fraud, misuse and the provision of high-end car marques. Like everyone, I am concerned by online “sickfluencers” exploiting a scheme designed to support the disabled. We encourage the reporting of misuse and we have an agreement with the national policing body to investigate any alleged malpractice. We remove thousands of people from the scheme every year thanks to this vital work.
Our fleet is now the UK’s largest, partly due to an increase in enhanced mobility allowance recipients and the new car market shrinking by a quarter, while rising vehicle and insurance costs make the scheme more attractive. After three years, we sell used cars on the secondhand market. This is the optimal age to ensure we receive the best value. Sale proceeds are put back into the scheme.
It is crucial that a fleet of this size is diverse, to spread commercial risk. If we as the private operator were unable to finance vehicles, billions of pounds of debt would be put on to the public books. And given the complex needs of some disabled people, we must make some large vehicles available.
More disabled people in work means a stronger economy, growth and more fulfilled lives. We are grateful for the responsibility vested in us to ensure that even the people who are most in need can live independent lives.
Originally published on Friday 21 March 2025
