Billion-pound car scheme becomes lightning rod in welfare row
Motability leases cars to people with disabilities, who can pay using their benefits, like PIP (Getty/iStockphoto)
Motability, a scheme which sees people with disabilities lease a car using their benefits, is facing scrutiny over its profits and executive pay amid welfare cuts.
The company paid out £100.8 million in salaries in 2024, with the highest-paid director receiving a total package worth £747,000.
The scheme has grown significantly, with over 815,000 users, raising questions about its affordability and potential misuse as the Government slashes £5 billion from the welfare budget.
Motability CEO Andrew Miller says most of its cars are economy, not luxury, models and its users are entitled to use their benefits in this way.
He says the scheme, which grew its revenue to £6.9bn in 2024, removes thousands of ineligible users each year, and that for every £1 spent via disability allowances, £1.50 is returned to the UK economy.