Vehicle leasing giant Motability Operations is to double down on efforts to curb suspected misuse of its scheme as debates over its taxpayer-funded business escalates amid call for the entire model to be scrapped.
The company, which accounts for one in five new vehicle purchases in Britain, operates under a government-backed programme that enables people to use disability allowances to lease cars or vans.
While Motability has no control over eligibility checks, the business confirmed that its internal compliance team investigated 35,899 cases of potential misuse last year, leading to 5,300 customers losing their car accessed through the scheme.
Vehicle leasing giant Motability Operations is to double down on efforts to curb suspected misuse of its scheme as debates over its taxpayer-funded business escalates amid call for the entire model to be scrapped.
The company, which accounts for one in five new vehicle purchases in Britain, operates under a government-backed programme that enables people to use disability allowances to lease cars or vans.
While Motability has no control over eligibility checks, the business confirmed that its internal compliance team investigated 35,899 cases of potential misuse last year, leading to 5,300 customers losing their car accessed through the scheme.
With media-driven reports targeting the scheme, Motability told the Financial Times that it is to review its policy which allows up to three named drivers for each vehicle.
Chief executive Andrew Miller cited a recent case where tracking data showed a Motability vehicle being used daily for school runs and late-night journeys outside its intended purpose. “We have to start looking at tracking more closely to address valid concerns about how the scheme is being used,” Miller told the Financial Times, adding that the company is also reassessing its insurance criteria.
Motability has come under heightened scrutiny as the UK government embarks on a £5bn welfare savings spree focussed on disability and incapacity benefit claims.
More than 40% of Motability’s customers have a household income below £20,000, and about 2.4 million people in the UK receive the mobility allowance with the government determining eligibility. Of those eligible for the higher-level benefit, around one-third lease vehicles through the scheme. The scheme’s user base grew by 14.7% last year, reflecting broader welfare trends.
The programme has also faced criticism over claims that luxury cars, including Mercedes-Benz and Audis, are being leased through the scheme although here, Miller pushed back, noting that premium models make up just 7% of its fleet of over 700,000 vehicles. Motability also provides charging solutions for EV users, aiming to help promote electric vehicle adoption in lower-income households.
Previously, the company has drawn attention for executive bonuses and cash reserves with some politicians arguing that its rapid expansion reflects an overly generous welfare system.
“We’re just trying to do the right thing,” Miller told the Financial Times, “helping our customers stay mobile as we navigate the shift to electric vehicles.”
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