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Good afternoon and I hope you are able to relax and enjoy this weather.
The Government’s Triple Lock is due to be resurrected fortunately after a year’s rest owing to Covid related costs.
With inflation currently about 10% and forecast to reach 13% in 2023 many people can expect similar increases in Pensions and certain benefits.
My current car while have enjoyed since May 4th this year , takes all of my PIP. And great value it is in my opinion.
If and when my PIP increases by perhaps 13% will Motability continue to take it all? Clearly motor related costs ( insurance, tyres, windscreens, staffing et Al ) will increase. I wonder though if Motability have a just cause and perhaps clause, which enable d entitles them to continue to take the whole benefit regardless of the increase.
I’d be pleased to read the thoughts of members with a greater understanding of the system.
Kind regards from a sunny and warm West Cornwall.
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Unfortunately yes they will , when you use your total allowance, that includes all increases to your benefit, for the time you have the vehicle
Thank you myself33.
First time I’ve appeared to thank myself.
Regardless, your answer is helpful and unsurprising. I had a vain hope that in these depression days ( as opposed to recession) the Charity, with its significant investment and savings could have been a little more precise in the costing Vis a Vis the benefit increase. I suspect it will not all be used to cover their costs because not everything rises equally. Like life.
C’est la vie
Once more, thank you.
Harry
Motability purposely use the term “Total allowance” for this very reason, so that they benefit from any increase in the amount each year.
It was changed in recent years, can’t recall exactly when. Before that they used to put whatever the full allowance was and it was fixed for the three years so the customer benefited when allowances were raised until the end of the lease. Some bright spark obviously realised they were missing a trick and they changed it.
We have to remember that ultimately Motability Operations is a business not a charity and they’re always going to put themselves before the customers.
If I seem a little strange, that's because I am.
Skoda Karoq SEL.
I do like the idea of any benefit going up by 13% but sadly I don’t think that will happen 3% if your lucky
Benefits managed by the Department for Work and Pensions are set to rise by a substantial amount next year. Earlier this year, the benefits were increased by 3.1 per cent.
The rise in April was in line with the inflation level in September 2021. Given the current cost of living crisis and the rate of inflation, it is thought that next year will see a record rise in payments. The Bank of England have predicted that inflation will hit 13.3 per cent next month, meaning that the increase to benefits next year will be substantial.
September’s inflation figure has been predicted to be around 11 or 12 per cent, which is the figure that the DWP will use when setting benefit levels next April. The exact figure will not be disclosed until October when the September consumer price inflation figure is published. But, it is expected to lead to a record rise in benefits next year.
So if lets say it rises by 10% it’s another £6.45 a week or £335.40 a year.
If you just recently started a lease that will be at least £1,006.20 over the next 3 years.
Luckily for me I left the scheme in june, after 11 brilliant years of being on the scheme. It just wasn’t as viable as it was and this extra will make my figures better still, compared to the scheme.
My biggest issues was the high ap’s and lack of cars on the scheme and of course the long waits. Then they suck up even more in the form of these huge rise in our benefit and give money to other charity’s and causes and projects they running rather than back into the scheme. WHY? because they can as they have a monopoly. Cannot wait to see this 6 months accounts and the profits mbo have made from the disabled.
WardyGTC….
Thank you for the information.
I’m not surprised.
So many things are unsurprising.
Take care
Harry
My Dear Rox
A wonderful response and one which chimes with a few on here.
The profits and use of same is a subject of concern for all. They receive our money and we must always get best value…. they have huge purchasing and bargaining power.
If the much needed inflation related benefit increase is taken whole and without published justification then questions must be asked.
No longer is a catch-all phrase, total allowance, a satisfactory defence.
Cheers all.
Harry
What gets me is the amount of anger aimed at the energy companies yet Motability are doing something similar but with a majority praising them rather than deriding them.
As Motability is a not for profit organisation, I would like to see “excess” profits returned to its members, like a dividend.
As Motability is a not for profit organisation, I would like to see “excess” profits returned to its members, like a dividend.
I agree totally.
Although the ‘profit’ may sound like a huge figure (£560,000,000) spread between the 650,000 customers in 2021, it ain’t going to go that far (£862). You might argue that I have used total customers rather than new customers, I don’t know.
They need to make money for the various projects they undertake such as: Installation of charge points, Good Condition Bonus of £600, New Car Payment of £250 and discounted or free hand controls.
You may argue that the profit is after all of the above. However, without financial reserves I am pretty sure they could not undertake any of them.
I agree that the AP’s are super high and the choice super limited. I am just not sure how this can be negated at the moment. I am fairly confident that all those involved are not happy with the current situation.
I wonder what Scotland will do?
Skoda Enyaq Race Blue
<p style=”text-align: left;”>If Motability gave half back, that would be £400. On a 3 year lease if repeated, that could add up to a fair chunk towards the next car. Something these organisations, like the National Trust have done, seem to lose sight of their original purpose. Affordable and worry free motoring for the disabled. They achieve the latter, need to focus on the former.</p>
Elliot….I agree completely. Splendid idea.
That’s what happens when people talk….. just need Motability to listen….
Harrysback
Let’s not forget the additional profit they are making from the increase in value of used cars.
There is developing, gradually, a sense, amongst those who have posted, an almost uniform feeling of either suspicion or at least dissatisfaction with a range of financial features.
The Triple Lock increase may well be, in smaller terms, a windfall for Motability, similar to the vast unearned profits of some companies as a result circumstances beyond their corporate planning.
Hundreds of thousands of members will see a 13% increase, an increase for many, so sorely needed, disappear into the bottom line of a balance sheet.
This is not the normal Total Allowance. These are not normal times. Far from it.
Members, already struggling with a range of issues, suddenly have a fuel cap increase and rampant inflation.
It is time that Motability considered the ethical dimensions and began communicating with us all , discussing this whole complex issue.
Kept myself busy today…made soup, washed darks, painted window recesses in a bedroom.
Chin up chums!
Harry
we might see 9% if lucky imo. motability have a cheek tho pocketing the extra cash. disgraceful of govt to allow it too.
Current Car: Hyundai Kona Premium EV...2 way 40kg hoist
Last Car: Toyota C-HR Excel Hybrid...4 way 80kg hoistThere is developing, gradually, a sense, amongst those who have posted, an almost uniform feeling of either suspicion or at least dissatisfaction with a range of financial features. The Triple Lock increase may well be, in smaller terms, a windfall for Motability, similar to the vast unearned profits of some companies as a result circumstances beyond their corporate planning. Hundreds of thousands of members will see a 13% increase, an increase for many, so sorely needed, disappear into the bottom line of a balance sheet. This is not the normal Total Allowance. These are not normal times. Far from it. Members, already struggling with a range of issues, suddenly have a fuel cap increase and rampant inflation. It is time that Motability considered the ethical dimensions and began communicating with us all , discussing this whole complex issue. Kept myself busy today…made soup, washed darks, painted window recesses in a bedroom. Chin up chums! Harry
Harrysback,
You keep referring to the ‘’Triple Lock’ within the context of Motability.
The ‘Triple Lock’ only applies to the state pension for those over state pension age.
What is the triple lock and how does it work?
At present, the state pension is supposed to increase each year in line with whichever of the following three things is highest:
inflation, as measured by the Consumer Prices Index (CPI)
the average wage increase
or 2.5%For other benefits/allowances (including those used for the Motability Scheme), by convention (and law) they will rise in April 2023, based on the prevailing CPI rate as at September 2022 (i.e. this month’s CPI rate which will be revealed in October). That is of course unless the government changes the legislation to give less/more – with the national debt rising I cannot see it being more!
There is no ‘triple lock’ for these benefits/allowances.
Good morning Big Dave and thank you for the BBC link and your accurate explanation of the triple lock.
Very clear and useful.
The thread’s title separates the three elements impacting or impacted by the potential increase.
I have tried to use the conditional tense to avoid any suggested certainty about anything.
Historical precedent since the coalition government has seen most benefits rise in response to the inflation figure, as does the State pension. To support one and ignore the others would be interesting!
With the current pressure on the government and Treasury to alleviate inflation pressure on people benefits will be rising, perhaps less than pensions.
The principal thrust remains the dilemma faced by an organisation which suddenly accrues an unexpected windfall. Whether it’s of the same magnitude as the state pension is to be seen. But if the new PM and Chancellor hope to remain beyond Christmas I suspect that benefits those in most need will follow the pension…..to support the elderly and not the disabled would be a political gaffe of historical proportion I think.
A dry cool breeze blowing acr Cornwall.
Harrysback
Well as you won’t post my reasonable comments regarding the Motability and the administration costs associated with the Scottish setting up their own version I will be reporting you to mars the owner of topic chocolate bar for the copyright infringement of using their topic bar as a logo for your forum so I suggest you cease and desist before they take any action my motivation for this is to let you know what it’s like to be censored I’m not sure Mars would like their intellectual property being used without their permission
Well as you won’t post my reasonable comments regarding the Motability and the administration costs associated with the Scottish setting up their own version I will be reporting you to mars the owner of topic chocolate bar for the copyright infringement of using their topic bar as a logo for your forum so I suggest you cease and desist before they take any action my motivation for this is to let you know what it’s like to be censored I’m not sure Mars would like their intellectual property being used without their permission
Your comments over Scotland setting up their own version of the Motability Scheme were outdated and irrelevant, the Scottish Government appointed Motability in February 2020.
Personally I would of liked to hear the comments, even if one consider’s them outdated and irrelevant. What is the purpose of censoring them, blocking them or whatevr one want’s to call it, it achieve’s what.
Control over others and the restriction of free speech. If it was Offensive then one would be justified. But to stop a point of view however one feels is not the way imo and is part of the overall problem.
If only we knew what the comment was now we/I all left wondering?
Personally I would of liked to hear the comments, even if one consider’s them outdated and irrelevant. What is the purpose of censoring them, blocking them or whatevr one want’s to call it, it achieve’s what. Control over others and the restriction of free speech. If it was Offensive then one would be justified. But to stop a point of view however one feels is not the way imo and is part of the overall problem. If only we knew what the comment was now we/I all left wondering?
We remove posts constantly, for a multitude of reasons, irrelevance to a post topic is justified in order to keep the flow and topic raised on point. All posters are able to start a new thread whenever they want. We do not or will never ‘Control’. Our job is to keep the conversation flowing and relevant.
Keeping things on topic. The calls for PIP/DLA to be increased in line with inflation have been rejected by the Government We will have to wait until October to see what the September CPI figure is. Judging by the timely reduction in fuel costs counteracting the rise in the food basket we could be looking at around a 9% increase.
Rather than this money going to sit on the balance sheet, it will be used to fight the increase in Advance Payments that we are seeing Quarter on Quarter.
Rather than this money going to sit on the balance sheet, it will be used to fight the increase in Advance Payments that we are seeing Quarter on Quarter.
So you pay more for your current lease while someone else, who starts a lease gets a reduction in ap. Yep seems about right. Just asking where did you get that infomation from, as to what the increase every year is used for.
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