Luxurious vehicles will not be out there for Motabiltiy recipients, it has been introduced, with the federal government saying more cash can even go to British producers below modifications.
The announcement comes simply days forward of the price range, though it doesn’t seem that the announcement could have any change to authorities funds.
Motability is a scheme whereby folks getting private independence funds (PIP) can sacrifice a part of their advantages in trade for a rental car, if they’re eligible.
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Motability autos are eligible for tax breaks, and the scheme has come below criticism for the notable enhance in recipients with out seen disabilities, alongside a rise within the quantity of PIP recipients.
There has additionally been criticism of the luxurious choices out there, which individuals will pay extra cash for.
Proponents argue the scheme helps folks get round and permits them to maintain jobs and reside extra independently. The scheme additionally pays for diversifications to autos if folks want them.
Tonight’s announcement comes from Motability Operations, the charity which operates the scheme.
It says the goal is for 50% of autos leased by way of the scheme to be in-built Britain by 2035, claiming it’s going to help UK financial progress with a requirement for 150,000 autos yearly.
Nevertheless, luxurious manufacturers comparable to BMW and Mercedes might be eliminated as choices, alongside the likes of Jaguar and Land Rover, “instantly”.
Within the room the place the price range occurs.
An announcement from Motability stated: “Within the quick time period, Motability Operations will work carefully with UK-based producers to extend the share of British-built autos leased by prospects, whereas sustaining affordability, alternative and high quality.
“This contains doubling the variety of Nissan British-built autos that the scheme leases to round 40,000.
“The intention could be that 25% of vehicles on the scheme could be UK-built by 2030, up from 7% at present.”
Chancellor Rachel Reeves stated: “Backing British automotive manufacturing will help hundreds of well-paid, expert jobs and is precisely the long-term funding our Trendy Industrial Technique delivers.
“We’re rising the economic system to convey down debt, lower NHS ready lists and lower the price of residing.”
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The federal government is tonight refusing to say if it’s going to change the Motability eligibility standards within the price range, with any modifications on this regard prone to come about because of the Timms evaluate into PIP.
Earlier this yr, the federal government tried to scale back the swelling PIP invoice, however was defeated by its own backbenchers, launching a evaluate chaired by minister Stephen Timms to take a look at the system.
Mr Timms stated final month that “there might be no modifications to the eligibility circumstances for the mobility part of the non-public independence cost” till his evaluate finishes in a yr’s time.
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It’s extensively anticipated the federal government will enhance welfare spending within the price range by scrapping the two-child profit cap.
Taxes are additionally anticipated to rise, as the federal government desires to seek out extra headroom and keep away from slicing budgets.
