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Motability is a United Kingdom scheme which enables disabled people to obtain a car, powered wheelchair or scooter by using their Government-funded mobility allowances.
The Motability Scheme, founded in 1977 by Lord Sterling of Plaistow and the late Lord Goodman, is a partnership between the charitable sector, Government, leading banks, motor and insurance industries. Since 1978 over two million1 cars, scooters and powered wheelchairs have been provided to help disabled people with their mobility needs.
HM The Queen has been the Chief Patron of Motability since its foundation.
Contents |
History and beginnings
By the mid 1970s almost every household in the country owned a car but disabled people were missing out. Only those who could drive themselves received any government help with transport, usually in the form of a small, blue trike which was unable to take passengers.
The Mobility Allowance (now called the mobility component of Disability Living Allowance), introduced by the Government in 1976, broke the mould in giving help regardless of ability to drive. It also signalled the Government's commitment to giving disabled people choice in the form of a cash allowance, rather than imposing certain types of vehicles on them.
The Mobility Allowance was a positive advance but it soon became clear that it was not enough to buy and run even the smallest car. So, the then Secretary of State for Health and Social Services invited the late Lord Goodman and (now lord) Jeffrey Sterling to consider how disabled people could use this allowance to affordably obtain a vehicle.
Thus Motability was born in 1977 and, often for the first time, disabled people could afford a good quality car , from any participating manufacturer, fully insured, serviced and with breakdown assistance. Motability was set up as a charity so it could also raise funds and make grants, in order to provide customers with a complete mobility package even if their allowance would not cover the type of car and adaptations that they needed.
Motability opened up new horizons – things that were once hard to accomplish became easier for many more disabled people such as shopping, doing voluntary work, visiting friends, getting to the doctor, going swimming, giving a family member a lift or enjoying a driving holiday. For some, enhanced opportunities for further education and profitable full-time employment also became a reality for the first time.
On 25 July 1978 ten young people attended the first Motability Scheme vehicle handover at Earls Court in London and received the keys to their new vehicles from then Chairman Lord Goodman. Julie Newport, disabled by polio, was one of the ten to receive her keys and commented: "I think it's marvellous," saying the Scheme gave disabled people the freedom and independence they really wanted. Also present were Rt Hon Lord Morris, Rt Hon Lord Jenkin, Allan Beard and Lord Sterling, the present Chairman of Motability.
In 2003, Motability celebrated its 25th anniversary with a garden at the Chelsea Flower Show. The garden included a Motability car, an adapted Renault Clio, to symbolise disabled people gaining access to the remotest parts of the countryside.
In October 2006, the Scheme hit the two million vehicles mark and Lord Sterling commented: "Family life revolves around the disabled person so if you make someone mobile you don't help two million, it's more like six to eight million."
The late Lord Goodman described the establishment of Motability in 1977 as "the most successful achievement of my career and the most fortunate thought that ever came into my head".
How the scheme works
Disability Living Allowance (DLA) is not means tested. It is a benefit designed to help towards the additional living costs incurred by people with disabilities and is broken into two components, Mobility and Care. Each component is valued at different rates; lower, middle and higher.
The Scheme is open to anyone who receives either the Higher Rate Mobility Component of Disability Living Allowance or the War Pensioners' Mobility Supplement. Those wishing to take the Contract Hire option must have at least 12 months' award length remaining when they apply. Those wishing to take the Hire Purchase option must have an award length of at least the length of the contract. The Care Component of DLA cannot be used to fund a vehicle through the scheme.
Contract Hire Option
The most popular option, chosen by over 95% of customers, is the contract hire of a new car, which offers worry free motoring at affordable prices. Customers choose a new car every three or five years with insurance, road tax, servicing, tyres and breakdown cover all included in a single monthly payment.
Many adaptations, such as push/pull brake/accelerator levers, are now also funded directly through the scheme so that the customer does not have to pay extra.
This payment is made automatically by the Department of Work and Pensions to Motability Operations under the authority of a form CP50 signed by the hirer.
While many vehicles do not require the customer to pay anything above their higher rate Mobility component, the customer may choose to opt for a higher specified model on payment of an Advance Payment which is non-returnable.
Means tested grants are available to those who, due to the nature of their disability, have no option but to choose a vehicle which attracts an advance payment, or who may need special adaptations not already funded through the scheme.
At the end of the contract period, the customer can choose to take another brand new vehicle. The customer may also wish to purchase their current vehicle directly from Motability at the end of their contract either for their own use or a friend's.
Hire Purchase Option
Alternatively, recipients of the higher rate mobility component of Disability Living Allowance can purchase a new or used vehicle via a hire purchase scheme over up to 5 years. However, this option does not include servicing, replacement tyres, insurance or breakdown cover.
The hire purchase payments are made automatically by the Department of Work and Pensions to Motability Operations under the authority of a form CP50 signed by the hirer.
Market Penetration
Over 480,000 customers currently choose Motability for their mobility needs and 97% would recommend the Scheme to their friends. Around two-thirds of Motability’s customers drive their own vehicle, but non-drivers can get a car as a passenger. Similarly, parents and carers can also apply on behalf of a disabled child from the age of three.
Once their application has been accepted, the customer uses all, or part, of their allowance to pay for their vehicle for the period of the contract hire or hire purchase agreement. Over 300 models of car are currently available to lease with no advance payment – larger or more expensive models may entail this additional cost.
The largest fleet operator in Europe and the largest supplier of used cars in the trade, Motability Operations is owned by five major clearing banks – Barclays, HBOS, Lloyds TSB, HSBC and the Royal Bank of Scotland.
Motability Operations’ annual turnover is around £990 million with assets worth £2.5 billion. Any surpluses are continually reinvested in the business. Motability Operations sells over 130,000 used cars a year and the company's car purchase accounts for approximately six percent of total new car sales in the UK. Since the Scheme started, over two million cars have been supplied.
Structure of the Scheme
The organisational structure of the scheme can be broken into two parts: Motability, which is a registered charity, and Motability Operations (Fomerly Motability Finance Ltd), a not for profit organisation which consist of five clearing banks. Splitting the organisation is intended to provide for checks and balances and ensure accountability for the administration of public funds.
Motability is a registered charity and has overall responsibility for the Motability Scheme, including:
• Directing and overseeing the Scheme; • Raising funds to provide financial help to customers through grants who would otherwise be unable to participate in the Scheme; • Administering the Government's Specialised Vehicles Fund which provides financial assistance for customers who need complex adaptations or to travel in their wheelchairs; and • Providing technical support to customers and the adaptation and conversion industry.
Motability Operations has the exclusive contract for administering the scheme. It is a not-for-profit private company. It also sets and monitors the standards of service provided by the dealer network, adaptations suppliers, breakdown company and the insurance company. Motability Operations also negotiates pricing with the vehicle manufacturers on a quarterly basis.
Insurance is provided exclusively by Royal and Sun Alliance who have a dedicated Motability division. Insurance for persons under 25 require a choice of car that is Insurance Category Group 8 or below. Royal and Sun Alliance also require any persons wishing to be one of the two named drivers to have none or possibly some minor endorsements on their Driving License in the last 5 years. Drink Driving convictions definitely require 5 years from conviction date to be eligible for insurance on a Motability car.
Breakdown cover is provided exclusively by the RAC
Adaptations are supplied and fitted by independent specialists who are accredited to Motability.
Customers apply via accredited main car dealerships.
The Wheelchair and Scooter Scheme is operated by Route2mobility, a limited company, under contract to Motability.