Raft of Motability changes

4:53 am, October 22, 2011

A RAFT of changes have been made to the charity Motability scheme, as we predicted earlier today.

This morning Car Dealer revealed the possibility of changes that would aim to halt some abusing the offer.

In a statement, the chairman of Motability, Lord Sterling, said: ‘Despite meeting the mobility needs of disabled people for over 33 years, it is very important that we are not complacent.

‘We must continuously strive for excellence by examining and refining all aspects of the scheme. During 2011, we have reviewed a number of issues including the range of cars available on the scheme and the clarity of our policies on how the cars are used and by whom.’

The changes specifically relate to the recommended retail price of Motability cars, and how the cars will be used and by whom.

The range of cars through the scheme will be ‘rationalised’ with only cars offered with an advance payment of £2k or less – approximating the RRP price limit of £25k. The change will rectify the current situation of more than 50 per cent cars offered having advance payments above £2k, and will be implemented in December 2011.

‘We will, of course, ensure that customers whose disability-related needs require a car above this level can be accommodated,’ said Lord Sterling.

‘This will simplify the scheme and focus on those who most need our help but it must be remembered that the quality of the backup service required by disabled people is key to the success of the scheme.’

Another key change will be how the Motability car may be used and by whom. The scheme will now only accept nominated drivers who live within five miles of the customer in order to reduce the risk of the car being used for purposes other than by the disabled person.

‘The principle of the scheme remains as it always has been – that cars must be used for the benefit of the disabled person. However, we have identified a need to refine our processes and communications around this principle, with clearer parameters so that customers can use the car appropriately and with confidence,’ added Lord Sterling.

Age of nomimated drivers will also change. Citing the cost of motor insurance rising, as on January 2012 Motability will no longer accept nominated drivers under the age of 21 on the scheme ‘unless they reside with the disabled customer’.

The scheme will also now restrict drivers under the age of 25 in cars in ‘ABI Insurance Group 16 which also have a power output of 115bhp or less’.