Economic contribution of the Motability Scheme
The Motability Scheme makes a significant contribution to the UK economy, supporting thousands of jobs and generating substantial GDP. The report found that in 2022/23, the Scheme contributed £4.3 billion to UK GDP, equivalent to 0.2% of the nation's economic output.
The largest impact on GDP comes directly from Motability Operations, which runs the Scheme, and the Scheme’s supply chain – including manufacturers and car/van dealerships who provide the fleet. Together, they generated £2.5 billion of GDP in 2022/23.
With 34,000 jobs supported nationwide, including 10,500 directly across Motability Operations and core suppliers, the Scheme is a major source of employment - 40% of these jobs are in the bottom third of deprived constituencies.
The Scheme supports jobs in every region of the UK through direct and indirect employment.
The Scheme also contributed £773 million in tax revenue to the UK Exchequer in 2022/23.
Social impact of the Motability Scheme
The Social impact of the Scheme is estimated at £11.2 billion in 2022/2023. Most of this total (£9.9 billion) was derived from improved wellbeing for customers. The Motability Scheme addresses one of the biggest challenges disabled people face: transport accessibility.
- 21.2% of Motability Scheme users report improved job opportunities due to their vehicle, enabling them to enter or sustain employment.
- Customers using the Scheme increase their working hours by an average of 14 per week, aligning with the drive to increase economic participation.
- 26.8% of users report improved access to training and education, equipping them with the skills needed to secure employment.
- 66.9% of customers experience reduced journey times, saving an average of 2 hours 17 minutes per week improving productivity.
The Motability Scheme helps reduce worklessness by ensuring people with disabilities have access to the same transport freedoms as everyone else. The tangible impact is felt through the £546m Scheme customers received in 2022/23 under the umbrella of employment.
A spokesperson from Motability Operations, which runs the Motability Scheme said:
“The Motability Scheme provides 815,000 customers with independence to access work, education, healthcare and the ability to contribute to the economy and play an active role in society.
“The Scheme has a major impact on the wellbeing of disabled Scheme customers and also supports the UK economy by addressing transport accessibility. According to Oxford Economics, 21.2% of Scheme users reported improved job opportunities due to their vehicle with individuals able to work an average 14 additional hours per week due to the Scheme. Similarly, the Motability Scheme supports the UK economy, contributing £4.3 billion to UK GDP and underpinning 34,000 jobs across the UK.”
Enabling the transition to electric vehicles
The report found that the Motability Scheme, is not only helping to broaden the use of EVs on both a geographical basis and across the socioeconomic spectrum, but it is also meeting demand for EVs at the more affordable end of the price spectrum. 89% of the EVs bought by MO were the cheapest 30% of EVs according to their retail price, compared to an equivalent figure of 45% across the rest of the UK’s EV fleet. Scheme provision of EVs was also more diversely spread across the UK’s nations and regions than the rest of the nation’s current fleet.
The Scheme is also bringing EVs to more deprived communities - the most deprived 30% of local authorities (based on average earnings) received 47% of MO’s EVs, compared with just 25% of the rest of the national total.
Hear from a Scheme customer
Watch what Vicki has to say about what the Scheme means to her:
