Minister indicates support for ending ‘luxury car’ leases by benefits claimants

Ministers will “always scrutinise spending of taxpayers’ money”, Downing Street has said, after the Transport Secretary indicated she would be comfortable with limiting access to “luxury” cars through a vehicle leasing scheme designed to help people with disabilities.

Under the Motability scheme, personal independence payment claimants with serious mobility problems can lease a new vehicle, if they receive the higher mobility rate of the benefit.

Chancellor Rachel Reeves is said to be considering changes to the scheme, following reports that some claimants have been able to access high-end cars such as Mercedes and BMWs.

Heidi Alexander, the Transport Secretary, was asked about reports the scheme could be pared back as she toured broadcast studios on Monday.

She told LBC: “I think that the Motability scheme provides really important support to people who do have mobility needs. I think some of the cars that people have been able to access… there’s some luxury models.

“I think we need to make sure that the scheme is always going to be there for the people who genuinely need it, and we also need to make sure that we’re offering the taxpayer value for money in the way that that scheme operates, and if that means that models such as really high-end cars, Mercedes, BMW, aren’t available on that scheme, then that’s something I would be comfortable with.”

Downing Street would not be drawn into commenting on Ms Alexander’s suggestion she would support premium car models being removed from the scheme.

“This is Budget speculation. I’m not going to get ahead of that,” the Prime Minister’s official spokesman said.

He added: “Clearly, we will always scrutinise spending of taxpayers’ money, and that is a guiding principle of the work we do as a Government.”

Several newspapers over the weekend reported that Ms Reeves plans to block who are people claiming sickness benefits from accessing the Motability scheme.

The Chancellor is also said to be considering ending access to high-end cars through the scheme, as well as top-of-the-range insurance and breakdown cover.

This is said to come from a concern that offering a premium driving experience to those using the scheme could undermine wider public confidence in the benefits system.