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The former head of the Motability scheme under fire from Department for Work and Pensions ( DWP ) criticis has spoken out. Matt Ryder spoke to the I paper about how the Motability scheme should be shaken up. It comes as Labour Party Chancellor Rachel Reeves delivers her Autumn Budget in November. Ryder urged the Labour government to end tax relief, offer secondhand cars, break the monopoly, - and, crucially, restrict Personal Independence Payment (PIP) eligibility. Matt says one option to amend the system is for the Government to end both the VAT and Insurance Premium tax reliefs enjoyed by Motability Operations for the leasing scheme. READ MORE Drivers face new monitoring device in cars under UK pay-per-mile tax “Motability could absorb that cost in a range of ways without pushing disabled people out,” Ryder said, before adding that “maybe they have to accept less profit”. “It’s reasonable to think you could offer second-hand cars instead,” Ryder said. “The average age of cars on UK roads is 10 years. So there’s a sense of fairness [to consider].” “My issue is that we’re providing tax relief for an operation that purchases new, luxury brands,” the former DWP policy expert added. “I don’t think the [Motability] scheme is necessarily out of control – I think the underlying PIP benefit has gone out of control,” said Ryder. “When it comes to mental health, the rise in claims is a problem across PIP and the benefit system. It’s definitely worth looking at as part of the PIP review.” “I wouldn’t want to see disabled people denied the chance to get around and have independence,” Ryder added. “I just think we can do better. I don’t think it’s a good, efficient use of taxpayers money at the moment.” While at the DWP, Ryder said he was frustrated in trying to get information from Motability Operations about how exactly they were using PIP money. “They were perfectly nice people – I didn’t feel they were deliberately obstructive,” he said. “But at an institutional level, there was just no mechanism to get data from them, to have any oversight over how they were spending benefit money."
