How the Motability Scheme is funded
It is a common misconception that the Motability Scheme costs the Government (and therefore the public) money. That is not the case. The Motability Scheme is funded by disabled people who choose to spend their higher rate mobility allowance to pay the cost of their lease.
In October 2015, the Parliamentary Under-Secretary of State for Disabled People, Justin Tomlinson, stated:
“Motability is an independent registered charity. It is not sponsored by the Department for Work and Pensions. The Department works closely with Motability and facilitates the transfer of benefit to Motability on behalf of those claimants who have chosen to join the Motability Scheme. The Scheme purchases vehicles which are then leased to Scheme customers. The purchase of the vehicles is funded by the Scheme and there is no cost to the public purse.”