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Changes to Motability Scheme and welfare cuts could be announced at Budget next month - Daily Record

By Linda Howard

Changes to Motability Scheme and welfare cuts could be announced at Budget next month - Daily Record

Rachel Reeves has said she cannot leave welfare "untouched" because it would mean putting up people's taxes, ahead of the Budget in November. The Chancellor has already acknowledged she is looking at potential tax rises and spending cuts and signalled that taxes on the wealthy will feature in her November 26 statement.

She said welfare reforms still need to happen, in comments during a trip to Washington DC for the annual meetings of the International Monetary Fund (IMF). An attempt to push through cuts to benefits earlier this year led to an embarrassing last-minute U-turn for the Labour Government.

There have also been reports that the Chancellor is considering removing tax breaks for the Motability scheme, which allows people to exchange all or part of their enhanced mobility award from a qualifying disability benefit - primarily Personal Independence Payment (PIP - often along with an additional up-front payment, for a lease on a car.

The Chancellor argued that MPs who previously voted against changes "recognise the welfare system is not working", in an interview with Channel 4.

She said: "You know we've now committed to doing reform in a different way, but we can't leave welfare untouched. We can't get to the end of this Parliamentary session and I've done nothing, basically.

"Because if more and more of our money that we spend as a government is spent on welfare, you've got less for the NHS, you've got less on schools and you have to put more on people's taxes."

The Chancellor will have to fill a black hole estimated at up to £50 billion by some economists in her statement next month.

The Institute for Fiscal Studies (IFS) said it expected the Chancellor would need to find at least £22bn to restore the £10bn of headroom she previously left herself against her self-imposed debt rules.

That does not take into account the cost of widely expected announcements on abolishing the two-child benefit cap and maintaining the freeze on fuel duty.

The IFS urged her to be "bold" and create a bigger buffer.

The latest figures from the company behind the life-changing Motability Scheme show there are now 815,000 customers across the UK, including around 80,000 living in Scotland using the Accessible Vehicles and Equipment Scheme.

Both schemes are exactly the same and run by Motability Operations, it's just a different name depending on which part of the country you live in.

The scheme enables people in receipt of a disability benefit, with an award for the higher or enhanced rate of the mobility component, to transfer some or all of the payment to lease a new car, wheelchair-accessible vehicle, scooter or powered wheelchair.

The new Autumn price list for leasing packages was published earlier this month on the Motability Scheme website and shows there are nearly 900 vehicles to choose from.

People on benefits such as Personal Independence Payment (PIP), Adult Disability Payment (ADP), Disability Living Allowance (DLA), Scottish Adult DLA, War Pensioners' Mobility Supplement (WPMS) and Armed Forces Independence Payment (AFIP) can join the scheme.

A full list of qualifying benefits and award level required can be found on the Motability website here.

As well as a new car, customers also benefit from insurance, breakdown assistance, servicing, maintenance, tyres and windscreen repairs as part of the package.

If you are choosing a car or wheelchair-accessible vehicle, it's important to be aware that while some only use part or all of the mobility award payment, most require an advanced fee which can range from between £100 and £2,000.

Chancellor Rachel Reeves will deliver the Autumn Budget in Parliament on November 26.

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