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PARLIAMENTARY WRITTEN QUESTION
(15 September 2025)

Question Asked

To ask the Secretary of State for Work and Pensions, how much his Department paid directly to the Motability scheme in 2024-25.

Asked by:
Dr Scott Arthur (Labour)

Answer

For the financial year 2024–2025 the total value of benefits transferred by Department for Work and Pensions to the Motability scheme was £3,074,920,421.67.

The Motability Scheme receives no direct funding from DWP. However, it does receive the direct transfer of benefit from DWP. This is claimant benefit the claimant would otherwise be receiving, and the cost of transfer is paid for by the Motability Foundation.

The Motability Scheme also receives zero rate VAT for hire of motor vehicle to individuals in receipt of specified disability benefits,: zero rate VAT for sale of lease vehicle on first sale after end of lease and zero rate Insurance Premium Tax (IPT) on Scheme policies.


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