Beware the Pink Flamingo

(also entitled “Blog examining some of the current commentary around Motability cars”) 

I am a parent of a son with Downs Syndrome, and yes, we have a Motability car. I am not an expert or even a campaigner but have felt the need to say something in regards of what I read every day about this area. I write from our experience and what I see around me. I am a fan of debate and review – with the proviso that should take place from a place where facts are being considered rather than rhetoric. 

Headline 

This is an important subject. As such it should be widely debated and reviewed. However, when carrying out such a review I would urge that people: 

• Consider the detrimental impacts on the lives of the disabled that Motability supports
  
  
• Consider whether the savings and income quote are realistic or are likely to be offset by greater costs elsewhere
  
  
• And most importantly to have the debate using well researched facts. Watch out for the Pink Flamingo as he lies! Others are so more experienced and experts in this arena so I would encourage the reader to research, ensuring you challenge what you are told.

 “You can get a free Motability car for [insert whichever ailment you consider to be the most minor here]” 

This is a myth. You cannot get a Motability car for anything. Motability cars are available for those people who have been awarded certain levels of benefits. Those assessments are made by the DWP. 

The second part of the myth is that they are free. Benefit holders can agree to give up that part of their benefit as a lease payment for a car. Often, they also pay an additional upfront payment. The car is never theirs and is returned – normally after three years. 

So, it’s the DWP’s fault for handing out money “willy nilly”? 

In our case we had to fill in pages and pages of forms, get evidence from medical professionals and attend a face-to-face interview.  Those forms are tortuous, and many believe that they are intended that genuine claimants will give up. 

From my perspective I worry whether the DWP care enough. They lose a high proportion of claims that are appealed and I was very worried when the news eventually was confirmed of their agreement with Citizens Advice. I know many are bothered by the start of bank account monitoring which I suspect will be extended to most in time. 

So not caring enough or perhaps being diligent with public money? I could make an argument for both. Less so - "handing out money willy nilly" 

“Most cars don’t have adaptions” 

This is true although not relevant. Not all disabilities are visible and those that are may not need adaptions. 

That actually doesn’t matter though as many Motability cars are not driven by the disabled person. 

Aaron will never drive. We use the car to take him to college and to the events in his life. Consequently, it needs no adaptations. 

“Cars should be small and basic” 

For many the Motability car is the only family car. Thus, the car has to carry others within the family – who may also have disabilities. If the car was small, it would not be suitable for the journeys that need to be made. Sometimes the disabled person needs additional room for mobility aids including frames and wheelchairs. 

Again, it isn’t relevant. Motability is a car leasing scheme. Thus, the customer can choose a more basic larger car or potentially pay a higher Advanced payment for something larger. 

As for basic, disabled users often need elements that might otherwise be considered optional – a higher seating position or electric boot release to name just two. 

Also, I could find nothing suuggesting that disabled people just have to be miserable.

“And they can get a BMW, Range Rover and Jaguar for free” 

I have already covered that it isn’t free. 

Range Rover and Jaguar are not on the scheme – but if they were the Advanced Payments would probably be very large. 

Some BMWs are. 

Motability is a car leasing company. Car leasing companies price their leases on a number of costs. Two of the most significant are the upfront purchase price and the likely resale value in three years’ time. 

For as long as I can remember certain German car marques have consistently had higher residual values than their competitors. Put simply they are worth more at three years old than others. Whether that is “fair” is a subjective point and based entirely on the used car market’s appetite for different types of cars. 

I have no idea what Motability pay for a BMW but can understand as to why they can be optimistic for a high resale value at the end of the lease. 

“Motability should buy British” 

It is an unfortunate fact that there are many less cars being manufactured at home now. Many that are fall into the luxury bracket. 

Motability is a leasing company and needs to be able to offer choices of vehicles. It also needs to use its buying power that brings prices down significantly. 

If there was to be an instruction that cars were to be only built in Britain, then both would reduce. 

It isn’t clear how such an instruction could be mandated. If it came from the government then there are clear rules as to why only buying from home suppliers isn’t permitted.  Also, under what powers would such an instruction be given? 

“And they get a free bus pass” 

This is probably the case. Though only a few areas offer travel before 09:30 on a weekday, fewer still offer free travel for a companion to the disabled. 

Again, though it is important to highlight that a car is likely to be the family transport and used for the benefit of many. 

Even so, I have worked in public transport for twenty-three years now. Opening it up to the disabled is a challenge that everyone would accept is far from solved. Many people who are disabled can struggle with the waiting for public transport, the accessibility and the worries that it will be there at all. 

Many rural areas have very limited public transport at all

“Motability now accounts for 1 in 5 new UK car sales” 

I assume that this is a reasonable statement of facts. But I wonder so what? 

While we don’t make nearly so many cars as we used to the UK car industry is still massive in the employment that it offers. 

Motability cars are well respected second hand so provide a valuable second usage as many used car purchasers will seek them out. 

“Motability is key to the push to electric motoring” 

This is definitely the case. In my experience Motability are very strong proponents of electric motoring. They have been on the receiving end of some stick for that – from users. Range anxiety and concerns over charging are higher amongst disabled users compared to others. 

As a nation we need more electric cars rather than diesel or petrol. Manufacturers have targets that they must achieve. 

Motability is key to the new electric car market now and also in supporting the affordability of very good used examples coming on stream at the end of the lease 

“£1.2bn will be gained in VAT if the current exemption is removed” 

It is suggested that the VAT exemption is costing up to £1.2bn a year. Then it is suggested that removing it government income would increase by that amount. 

While I haven’t checked the numbers the first suggestion is probably right. The second is nonsense. 

Basic economics says that if you increase the cost of anything significantly (that is not a monopoly) demand will fall. The VAT exemption being removed would increase the Advanced Payment that customers would have to pay – perhaps between £3,000 and £7,500. 

For most this would be unaffordable. Many on the scheme are already amongst the lowest earners. They would have to seek a vehicle elsewhere. This would be challenging as for many traditional car and bank finance is unobtainable or charged at a very high rate of interest. 

Most likely then, many current Motability customers will not be able to travel. They will not be economically active and thus the cost to the country will be much higher. 

In addition, a smaller Motability scheme would have lower buying power so their costs would likely increase on a per car basis. 

We should also note that there are other VAT exemptions available for the disabled and elderly. I am not clear as to whether the proposal includes the ditching of all of those as well? 

Financial benefits of the Motability scheme 

It is not surprising that the disabled having access to jobs via their Motability car is good for the nation’s finances. Research from Oxford Union[1] 

points to increased working hours being possible and  increased access to training to help get a job. The same report shows massive uplifts to the UK GDP as well as direct income from taxation. This points to a saving being made in one area being lost elsewhere. 

Motability isn’t the only scheme to support EV take-up 

Take-up of electric cars by company car users has been very high. The benefit in kind rates are much more attractive for an electric car rather than one powered by electric or diesel. Providing fuel for home use has always been a real issue for HRMC though there is no tax charge for company car drivers charging their electric cars at work. 

This could mean that a high earner saves £15 - £20 thousand pounds a year by opting to go electric. The argument made is that this is good for the economy, the environment and also provides cars into the used supply. 

It’s not necessarily a bad idea. 

Arguably Motability achieves the same outcomes – potentially at a lower cost to other taxpayers per car. 

“It is completely defrauded. I personally know of [insert a number not less than twenty here] of people who are defrauding it.” 

Like every scheme aimed at everybody Motability has some fraud. From individuals who exaggerate or are untruthful up to organised crime gangs. 

Motability and DWP are working to identify and eliminate fraud. Both would welcome intelligence from the public as to where fraud is known. 

I would say though, for anyone confident that they have identified at least twenty such instances – have you considered a career in law enforcement? Twenty is a lot. I think Inspector Morse only averaged spotting eight or nine villains in any one episode! 

People with a Motability car shouldn’t get home to school transport.  

I can see why this argument would gain some traction. (and it does at least demonstrate that there is an understanding that the disabled person doesn’t necessarily drive the Motability car) 

In our case Aaron doesn't get home to college transport and my wife takes him to college in the Motability car. That makes sense. 

Previously though we both worked. That was only possible by virtue of home to school transport. Even with it she had to leave home by 530 am to be able to return in time to pick him up off the school bus. If it hadn't been for her employer’s flexibility and being able to use the car for work, then that wouldn't have been possible. She would have not been able to work. I don't know whether she would have been able to claim benefits but certainly wouldn’t have paid the tax and national insurance that she did while working. That SEND home to school bus was a lifeline to us as it is to so many.

The impacts are being felt now 

Potential changes to the Motability scheme are impacting people now. Some are worried that they shouldn’t take up a car because the costs may become unaffordable mid lease. I suspect this is unlikely, but the fear is real. 

There are reports of vandalism against “Motability” cars. The word is in quotes because some cars have been targeted but weren’t from the scheme at all. 

Apart from distress and cost this led to disabled people being left isolated within their homes. 

This is a tweet (they are not called that anymore are they) from Lancashire police.

They didn’t answer the question raised in one of the comments as to the relevance of it being a Motability car. I raised the same question to them at the time. They didn’t answer me either. 

Whatever their intentions the comments made against this tweet and the numerous times it was retweeted by other organisations, were overwhelmingly anti-disabled. 

“And I saw someone with a Bentley with a Blue Badge” 

Just to cover this one. You can get a blue badge for a number of reasons. And you do not need to be receiving the benefits that allow you to access the Motability scheme. So yes you can have a Bentley and us a Blue Badge. 

Again, anyone suspecting Blue Badge fraud can and should report it to the authorities. 

Beware the Pink Flamingo 

My last point is to be wary of what you see on Social Media. I don’t think I fully understood before how you can monetarise Social Media accounts. This is achieved by achieving engagement, likes, comments and reposts. 

Increasingly this seems to be giving rise to accounts whose sole objective is to gain such engagement. Their content is absurd, controversial and yes potentially entirely made up. But that doesn’t matter as it creates revenue. 

Given the DWP and Motability fraud teams are digitally aware I wonder if those people claiming that they are defrauding this benefit and that benefit and have a new Lamborghini every week on Motability might not be being truthful?  Surely, they would be tracked down? 

Like my friendly Pink Flamingo below it is likely that much of the content is simply made up for clicks

I should credit Gemini for the creation of the spoof post shown in the image (though its spelling is awful) 

Actually, when using the new AI engines that can be so useful please be cautious. They have a habit of repeating statements made as fact and have to be pushed against to examine the facts looking for an alternative understanding. It took me several attempts and pushbacks to get AI to understand the nuances of these calculations and issues. 

Summary 

This Blog has been intended to give a personal view of the debate around the future of the Motability scheme (well done if you read this far!). 

I am not an expert, and others will be much better placed than me. 

My take is that many of the ideas being proposed don’t take account of the realities. Even if you ignore (and you shouldn’t) the very detrimental impact on the disabled if they were to be enacted, many are either not possible or practical. The “savings” quoted would lead to additional expenditure elsewhere.

[1] https://news.mo.co.uk/news/scheme-impact#:~:text=The%20Scheme%20also%20contributed%20%C2%A3,from%20improved%20wellbeing%20for%20customers.