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Forum Home  →  Discussion  →  Disability benefits  →  Thread

Reversing from Recovery - new report on Motability and PIP

Paul Treloar
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Head of Policy, LASA

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Total Posts: 842

Joined: 6 January 2011

A new report, Reversing from Recovery, from the Spartacus disability campaigners considers the impact of proposals for Personal Independence Payments (PIP), which under the Welfare Reform Act will replace Disability Living Allowance (DLA). They note that the Government’s own figures project a 27% reduction in the number of working age disabled people eligible to access the Motability scheme. This equates to an approximate 17% reduction in the total number of Motability car scheme customers.

Reversing from Recovery uses information available in the public domain to show that the Government’s plans, by reducing access to the Motability scheme, will create a domino effect, including the loss of:

* More than 30,000 new car sales each year
* 3,583 jobs (from 21,080 jobs to 17,497 jobs)
* £342 million contribution to GDP (from around £2 billion to £1.67 billion)
* £79 million in tax receipts

In addition, many disabled people are saying they can’t see how they could continue working without their Motability car; they will have to stop paying taxes and start claiming out of work benefits. The report also notes the problems around accessibility and public transport around the country.

To download a copy of the report, see Reversing from Recovery