Guest Blog | Oct 23, 2025 | 2 Comments |
Letter to Chancellor of the Exchequer
Mo Stewart, research lead for the Preventable Harm Project, has written to the Chancellor of the Exchequer about her reported plans to remove VAT exemption from Motability vehicles.
Mo Stewart’s letter
(external links below will open in a new browser tab or window)
Dear Chancellor
Re: Disturbing threat to the wellbeing of disabled drivers
I write in my capacity as the research lead for the Preventable Harm Project,1 ongoing since 2009, to express serious concern regarding the reported news that you intend to threaten the wellbeing of the disabled community dependent upon access to a Motability car.2,3 If this happens, and you do remove the VAT Exemption on Motability cars in the pending budget, it will guarantee that the cars accessed by some of the poorest people in the land will no longer be available to them due to this threatened increased cost; thus removing independence and quality of life from those in greatest need for whom the scheme was designed.3
But Motability Operations, the company that runs this scheme, said this week that removing VAT relief ‘would make cars unaffordable for most disabled people, leaving only the wealthiest able to access the scheme – a result that would fundamentally undermine its purpose.3
It is cause for serious concern that this planned threat to Motability car users follows the disturbing claims by the Leader of HM Opposition and the Shadow Secretary of State for Work and Pensions at the recent Conservative Party Conference, who made disturbing claims against the disabled community, and disabled users of Motability cars, which were all a work of fiction and have been severely challenged.4,5 It is to be regretted that your decisions negatively impacting on those in greatest need do appear to be influenced by the derogatory commentary by the Leader of HM Opposition whilst disregarding the brutal human consequences such plans would generate.5
There has been some extreme, hostile and disturbing commentary in the press recently, onceagain condemning those in greatest need in the UK with predicted cuts planned ‘to boost confidence in the welfare system’.6,7 This causes a great deal of suffering and there is an identified government-induced public health crisis within the disabled community as a direct result of these endless threats that have been ongoing for over fifteen years.8
Actions have consequences, and the chronically ill and disabled veterans have already suffered enough for this country. It would indeed be yet another tragedy if they are to suffer again by the latest government threat to remove their independent transport. There is a ready source of increased government income if the billionaires and millionaires were taxed fairly and those in greatest need were not, yet again, punished for being unable to work.
Thank you for your time.
Yours sincerely
Mo Stewart
Fellow, Centre for Welfare Reform
Research Lead, Preventable Harm Project
Author ‘Cash Not Care: the planned demolition of the UK welfare state’
Editor The Preventable Harm Project
Researcher Influences and Consequences
Copied to: Kailia-Jayde Cameron, Chair Green Party Disability Group
Nigel Fletcher, Chief Executive Motability Foundation
Linda Burnip , Disabled People Against Cuts
Frances Leckie, Editor Independent Living
Veterans Advisory & Pensions Committee
Emma Vogelmann, CEO Transport for All
References (external links will open in a new browser tab or window):
1 The Preventable Harm Project
2 Rachel Reeves takes aim at Motability scheme to save £1bn in budget
3 Chancellor’s reported plans to impose VAT on Motability could add £3,000 to even the cheapest cars
4 REDACTED-Letter-to-Helen-Whately-Shadow-SoS-for-Work-and-Pensions.pdf
5 REDACTED-Letter-to-Kemi-Badenoch-leader-of-the-opposition.pdf
6 Rachel Reeves plots £1bn cut to Motability scheme which lets disability claimants access cars
7 Shocking stats that confirm Motability is out of control thanks to broken benefits system
8 Preventable harm: creating a mental health crisis
Ends – click to return to top or check out related resources below
Further reading and resources
Update on petition against the changes to Motability
The Timms Review of Personal Independence Payment (PIP) launched
Party conference season – politicians demonising disabled benefit claimants yet again
Proposal for an Independent Advisory Panel on DWP-related deaths
You can now watch Mo Stewart’s talk, “What will become of the welfare state?“, given at the University of Brighton Centre for Applied Philosophy, Politics and Ethics (CAPPE), on YouTube.
The rules around VAT exemption on disability products
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This came up has a topic on LBC phone in radio show, so incensed by the nonsense from callers claiming that ‘Granny was being tricked in to getting sports and prestige brands brands for free to family members’ I tried get on the phone in to put right some of these falsehoods. I was held on the phone for thirty minutes listening with the exception of one caller all the rest of the calls were antidotal, couple of callers claiming to be dealers, which they clearly not motability dealers.
When the researcher asked what my knowledge of this was, I explained we had several cars over the years for my wife with progressiveMS, and also saying none were free especially not the Mercedes they kept mentioning, and whilst there may be a few cases of misuse this was not the true picture. I also pointed out Motability was a not for profit company and not the government component of the mobility payment on PIP, which can be used by many for wheelchairs, scooters and just defraying taxi cost etc.
Surprisingly I did not get on, clearly did not fit the negative narrative they were exploring.
As for the vat of £3000 it is basically a stealth tax, essentially wiping out a years worth of mobility payments by the government. The work motability as a company does is incredible, they use their clout as a leasing company to get the best deals, both in leasing, group insurance and maintenance. The short sightedness if this tax comes into force will not only makes the scheme unaffordable for most but it will also have a catastrophic effect on the motor trade, both manufacturers and dealers creating job losses and closures on an already stressed system.
Perversely the government is offering an unnecessary and expensive to the tax payer a subsidy to electric car buyers of £1500 or more, most if not all are imported.
Why is it that disabled people get targeted all the time ,
No one gets anything for free, no matter what people say your still paying for it with your benefits ,
And do the government tell you if you get your benefits stopped the car goes back because there’s no money to pay for it ,
Always read the small print ,
After all this as been going on for years so nothing new ,