Motability to Introduce Price Cap

Most of us who have to spend years paying off our car payments do not take kindly to reports of fraud where tax money is involved.  This is exactly what has been happening with the MLA scheme and Motability, it seems.


Motability has now decided to introduce a price cap of £25,000 on cars available through the charity fleet to at least partly curb the alleged abuse of the scheme.


The Department of Work and Pensions has apparently put pressure on them after recent newspaper headlines reported that some people who received a £205 Mobility Living Allowance added private funds to acquire luxury cars worth up to £37,000.


Motability is a £1.5bn Government-assisted scheme.  Its chairman, Lord Sterling, has ordered the changes in an attempt to prevent further abuse of the system.


They also had to tighten up rules that allowed someone in receipt of an MLA allowance to lease a car from Motability and then nominate someone else as the driver of the car.  In terms of the new ruling the driver has to live within five miles of the recipient.


According to Sterling there had been 7,144 alleged cases of fraud in 2010.  The police investigated many of them.  The charity also took action against 2,139 individuals and a total of 829 cars were withdrawn after investigations.


Sterling said the average cost of a car leased through Motability was £19,500.  The operator currently has 575,000 beneficiaries; ten years ago this figure was a mere 200,000.



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