Motability Car Scheme

Siobhain McDonagh Excerpts

Tuesday 23rd February 2016 Westminster Hall

[Alan Brown]

I recognise my hon. Friend’s expertise and agree with her point, which touches on what I was saying. In some cases, it is not even about the stress of losing the Motability vehicle; it is about the stress and panic about getting to that stage, so we are talking about an ongoing mental condition.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

On the point about increased cost, I would like to make the Chamber aware of my constituent, Lorna George. She lost her higher rate mobility component of DLA when she transferred to PIP and, as a result, lost her vehicle. Because she is in full-time employment, she was entitled to the Access to Work scheme, which meant that she received £150 a week from the public purse to get to and from work, as a result of losing her DLA mobility component of £54 a week. How is that saving anybody money?

[Alan Brown]

That was another fine intervention. These examples are what make it real for everybody, and I will touch on what I think is the madness of the financials later.

To be clear, we have heard some personal examples, but the statistics back up the concerns that I highlighted from the young person with muscular dystrophy. To date, of the 31,200 people on the Motability scheme via the higher rate DLA who have subsequently been reassessed for PIP, some 14,000 have lost the higher PIP mobility rate and, therefore, their car as well.

Going back to the stress and trauma of losing a car, we are lucky that Motability takes its duties seriously and goes above and beyond to support people in that position. It supports them with financial assistance—for example, through a transitional lump sum that might aid in the purchase of a car. Motability also provides advice packs for customers and advises on insurance, maintenance, adaptation services and even local transport options. We should be clear that Motability should not be filling in these gaps for people who are effectively left stranded.

It is no wonder that 91% of those who left the scheme were satisfied with the support that they had received from Motability. I commend the organisation, but that does not mask the fact that we are still only at the early stages of the PIP reassessment, with the reality that nearly one in two people lose their higher mobility access. I put this to the Minister: are we really to believe that almost half the people on enhanced DLA either exaggerated or fabricated their conditions to access Motability or, at best, suddenly no longer need that support?

In Scotland, 70,000 people are using the Motability scheme, so, using statistical analysis, we know that up to 31,500 people could lose out—I accept that some people beyond working age will not be reassessed. If we take that down to the level of my constituency, 1,500 people are using the Motability scheme at present, so up to 670 people are possibly at risk.

I will give the example of one of my constituents. Lynne Paton has written to me to say:

“I am due a new car in July. I haven’t been assessed for 2 years. I have the higher rate at present and I have”

had it

“since my 2 strokes. I have been in the hospital 3 times lately with chest infections. I am now struggling to get up and down my stairs because of the difficulties trying to get a breath. I am now using my electric Scooter again because I now can’t walk very far because of my breathing. The car we have just now was picked because the scooter can go in the car. I don’t know if I will get assessed again in the near future but if we were to lose the car I wouldn’t be able to get out and about. Also John is due to retire so our income will drop and we won’t be able to buy a new car suitable…I hope you can fight for people like me who need their cars. I know you will do your best for disabled people”.

That should be a clear case. If Lynne goes to be reassessed, there should not be a problem, but we all know that there are problems. She could go through a wee bout of better health and suddenly be deemed not to meet the requirements for the higher mobility rate. I should also say that I know Lynne as a fantastic community volunteer, who understandably has had to scale back recently, but with what she has put into the community over the years, there is no way she should have this worry hanging over her head. I dread having to go back to her and say, “You know what? I raised this in a debate at Westminster, but as usual the Government didn’t listen.”

I have already touched on the fact that this is not about giving disabled people greater flexibility and control over their budgets and lifestyle choices; it is part of the austerity agenda. The original suggested saving of £2.5 billion by 2018 confirms that, but it is also worth noting that the Government were willing to give assessment contracts worth some half a billion pounds to be able to get those savings. That is not value for money, and by the way, it can be no coincidence that the previous Minister for the disabled was one of the few Tories who lost their seat last year.

When it comes to the overall PIP strategy, the money has been so well spent and the strategy so well managed that the timescales have been a disaster, with the High Court ruling in June 2015 that the delays were unacceptable and unlawful. At the same time, the Office for Budget Responsibility noted that

“costings associated with structural changes to the welfare system…are subject to even greater uncertainty.”

It highlighted that its previous “Welfare trends report” had

“noted that our latest forecasts suggested higher than expected success rates for new claims to PIP across the forecast, which had in effect reduced the savings originally expected for this reform”.

It is not achieving the savings that were anticipated and, worryingly, with 45% of people who have been reassessed losing access to the Motability scheme, we have to wonder what the real purpose of the original target was. Let us consider the irony of the Tories’ manifesto pledge to halve the disability employment gap and support disabled people. Perhaps it is just me, but I simply cannot connect the dots. How does the Conservative party strip the freedom that a Motability vehicle brings to a disabled person from them and still aim to break down the barriers to work?

The Multiple Sclerosis Society, for example, has said that the Motability scheme can have positive impacts in terms of employment for users and their families. It claims that use of a Motability vehicle has enabled many of its members to gain employment, enabling disabled people to have a much more rounded, independent life. The recent Mencap review, “Halving The Gap?”, proved that the Tory policies are driving disabled people away from work rather than into work. That is why access to Motability vehicles is so important.

On a more positive note, the disability charity Scope undertook a report to assess the economic impact of getting more disabled people into employment, which was published in April 2015. It found that the impact on the economy of a rise in the disability employment rate would be significant. Indeed, a 10 percentage point rise would result in a £12 billion gain for the Exchequer by 2030. When we hear Tories in the main Chamber announcing that unemployment in their constituency is down by 50%, we should compare and contrast those statistics with the benefits of small increases in the employment rate for disabled adults. My hon. Friend the Member for Banff and Buchan (Dr Whiteford) has written to the Secretary of State for Work and Pensions to express concern that a lack of access to the Motability scheme will prevent disabled people from getting to work. It is clear that the Government should focus on that, rather than on savings.

Not content with one failure, the Government also have a proposal to cut the employment and support allowance work-related activity group payment, taking £30 of benefit a week from those in need and taking sick people even further away from getting back into work.

We in the Scottish National party are committed to supporting disabled people, which means opposing the regressive and punitive measures deployed by the Tories, not just for those eligible for DLA or PIP, but for the disabled people who rely on ESA and have been subjected to the unfair and failing work capability assessments. The SNP in Scotland are doing all we can, within the resources and powers that we have, to help disabled people, who are disproportionately affected by welfare reform. New powers over disability benefits in the Scotland Bill will provide opportunities to develop different policies for Scotland. In the Scottish Government, the Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights, Alex Neil, wants policies that are

“fairer and ensure people are treated with dignity and respect.”

We must remember that this comes against the backdrop of the UK trying to cut the Scottish budget through the fiscal framework agreement and the fact that, due to the Tory austerity agenda and ideological cuts, the Scottish Government are currently spending £104 million to mitigate the worst aspects of welfare reform.

It is my contention that the Government should think again. All of us here, as lawmakers, owe it to those we represent to protect the most disadvantaged. The SNP has already demonstrated our commitment in that regard and will do so again with new powers over disability benefits, but I repeat: I urge the UK Government to think again.

--- Later in debate ---

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I thank the hon. Member for Kilmarnock and Loudoun (Alan Brown) for securing this debate and for giving me the opportunity to have a quick “round the office” look at some of the anomalies affecting people as they transfer to PIP and its higher-rate mobility component.

I have already spoken about Ms George, who was in work and lost her higher-rate mobility payment only now to receive £150 a week from the Access to Work programme—tripling the amount of money paid to help her mobility, yet causing greater problems for her 13-year-old daughter, who is her main carer and now has to do even more tasks for her mother.

Looking at Ms George’s case for this debate allowed me to follow on to the case of Mr Abrahams, who is also in full-time employment. He suffers from spina bifida and cannot walk more than 20 yards. He had a specially adapted car with hand controls, which is about to be removed on Tuesday, so it would be great if the Minister could help us while Mr Abrahams’ appeal is being considered, as he lost his mandatory reconsideration. We are going to get him to apply to the Access to Work programme, so he will probably cost the Government a lot more money than if he had just retained his higher-rate mobility payment.

Patrina Ross suffered a stroke in 2014 and was awarded the lower-rate care component and higher-rate mobility component of DLA. When she was reassessed for PIP, the rates were swapped, so she got higher-rate care and lower-rate mobility. Her car was taken away, but she was paid £25 a week more. She does not want more money; she wants the adapted car.

Daisy Tadros was shifted from DLA to PIP without being informed. The first she knew of the transfer was when she got a letter from Motability saying that her car was going to be taken away. There had been no assessment of her case, yet there is a date for the removal of her car. We discovered that the Atos database does not work with the DWP database, so when Motability was trying to find out the status of Ms Tadros’ claim for PIP, the DWP could not tell Motability her status because the DWP does not have a system that works with Atos’s system. The only way the DWP, Motability and Atos could talk to one another was through the involvement of Ross in my office. He spoke to each of them so that they could co-ordinate and consult each other. The hon. Member for Bath (Ben Howlett) spoke about swapping information and access to information, which is clearly a problem within the system. The Minister might find that lots of people who are entitled to PIP but who are not getting it because of administrative error will have their car taken away without their ever getting as far as Atos or a decision.