Government funding of Motability depends on how you look at the enhanced PIP payment. On one hand, it’s a government expenditure for people who qualify, which also qualifies that person to Motability. That payment would be made for as long as the recipient qualifies, regardless of whether they drive or are driven in a Motability vehicle. As such many argue it’s not to be counted as government funding of the car.
The other argument is that this payment plus tax reliefs all come from the government coffers as could the AP if the recipient only has benefits as income. That’s clearer to see as government funding.
However, the argument then goes as to how much of a civil servant’s car is government funded if they earn from the government purse? If you follow that once you’ve been paid the money it’s yours, the same goes for PIP, does it not?
If you subscribe to the “Free Cars” then income from government coffers counts as government funding, whether it’s given as entitled benefits or earned salaries.
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Mark