Story perspectives

Motability's £3.4 Billion Overspend Sparks Taxpayer Savings Debate

9/11/2025

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Summary

Story summary

Research from the Adam Smith Institute shows Motability overspent by £3.4 billion last year on new vehicles, surpassing the UK's school maintenance budget.
VAT and Insurance Premium Tax reliefs contribute £1.2 billion annually to this expenditure.
Enhanced-rate PIP mobility claims rose by 80%, primarily from mental health issues.
Critics suggest leasing second-hand vehicles could save taxpayers £3.5 billion annually.
Motability counters that older cars would lead to higher insurance and repair costs.

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Story summary

Research from the Adam Smith Institute shows Motability overspent by £3.4 billion last year on new vehicles, surpassing the UK's school maintenance budget.
VAT and Insurance Premium Tax reliefs contribute £1.2 billion annually to this expenditure.
Enhanced-rate PIP mobility claims rose by 80%, primarily from mental health issues.
Critics suggest leasing second-hand vehicles could save taxpayers £3.5 billion annually.
Motability counters that older cars would lead to higher insurance and repair costs.