High Rate DLA Mobility

With the Government altering the way benefits are to be paid ,
what will happen to Motability which so many of us rely on to lease a New Car every 3 years???

That's a good question. Motability is a charity not a government department, but I've just taken a quick look at their accounts and it would seem that they are very heavily reliant on government grants.

www.motability.co.uk//documents/website/...Report%202008_09.pdf

However, I don't recall any mention by the government in the spending review of any cutbacks to motability, so its future is an unknown quantity.

(That's leaving aside the proposed cutback to HRM DLA for people in residential care, which is often used for Motability cars.)

anthony
sklar wrote:

With the Government altering the way benefits are to be paid ,
what will happen to Motability which so many of us rely on to lease a New Car every 3 years???

Hi,

Earlier this year, I attended a briefing session, part of which was given by a chap form Motability.

He seemed to indicate that Motability Operations (the side that supplies the cars/wheelchairs and is owned by four major banks on a not for profit basis) could survive a customer reduction based on an updated structural business model.

Some issues identified though was the value of the Pound v other currencies, such as the euro and the yen which can affect the cost of imported vehicles form Euroland and Japan for example and also the resale value of cars. The view was Motability would have to work harder in securing deals in order to give value to the customer.

What does remain to be seen though is the effect over time of the change of benefit increases from RPI to CPI. The CPI being usually (but not always) lower than RPI, which may have an effect on the cost of the vehicles in the future.

Pete