Motability Scheme customer look set to benefit from a decision by Motability Operations to reduce the level of cash reserves that the business holds. This could mean that Motability Advance Payment prices for brand new cars will fall and there will be more support for suitable equipment to help meet the needs of people with a disability.
This decision follows a long review by the National Audit Office (NAO) and Treasury and Work & Pensions Committees. The decision means that the levels of reserves held by Motability will fall from £2.5 billion, which the reviews concluded were “out of proportion to the risks it faces.”
Motability Operations (the official name of the firm that runs the scheme on behalf of the Motability charity) issued a press statement, which said:
Commenting on the decision, Nicky Morgan, Chair of the Treasury Committee, said: “Last week’s announcement by Motability Operations – that it will release £370 million from its reserves to support customers and disabled people with mobility needs – is good news for members of the scheme.
“Motability Operations must now ensure that its customers will benefit from this either in the form of lower prices or more generous vehicular adaptations.”
The Motability Scheme helps people with a disability who want to exchange their government-funded mobility allowance to lease a brand new car, scooter or powered wheelchair, giving them the freedom and independence that most people take for granted.