UK Government Plans PIP Eligibility Review Affecting Motability Scheme

Reform UK, led by MP Lee Anderson, has proposed tightening eligibility for Personal Independence Payments (PIP), potentially saving up to £9 billion annually by excluding those with less severe psychological conditions like anxiety and reinstating face-to-face assessments. Anderson, who previously worked at Citizens Advice, admitted to helping clients 'game the system' to secure benefits, criticizing the current welfare system and the rise in claims, particularly among young people. Meanwhile, concerns have arisen over potential changes to the Motability scheme, which enables disabled individuals to lease vehicles using PIP mobility payments, with reports suggesting Chancellor Rachel Reeves might impose VAT and restrict luxury car options to save costs. However, Minister Sir Stephen Timms assured that no changes to PIP eligibility or the Motability scheme will occur before a comprehensive review concludes in Autumn 2026, emphasizing the importance of impact assessments before any reforms. Labour MPs warn that cuts to these schemes risk worsening health outcomes and employment prospects for disabled people, potentially leading to higher long-term costs. The government acknowledges the need to balance fiscal responsibility with support for disabled individuals, committing to co-producing reforms with disabled people themselves.