Motability: Finance

(asked on 7th July 2026) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what estimate they have made of the income or savings to be derived from the new criteria for Motability vehicles limiting the mileage a lessee can drive before incurring a charge.


Answered by
Baroness Smith of Malvern Portrait
Baroness Smith of Malvern
Minister of State (Department for Work and Pensions)
This question was answered on 17th July 2026

We do not have an estimate of the income or savings to be derived from the new mileage criteria. A series of measures were announced in the November 2025 Budget to strike the right balance between delivering a key service for disabled people and fairness to the taxpayer, saving over £1 billion by financial year 2030/31.

Motability Operations is an independent commercial company under contract to Motability to deliver the Motability Scheme. Motability Operations is owned by the four major banks (Barclays, HSBC, Lloyds, RBS). No ordinary dividends are paid, and all profits are reinvested in the company to benefit Scheme customers or donated to Motability the charity.

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