Motability has confirmed new rules will come into force for first time leases, under 30s – 300 vehicles were removed from drivers during pilot
Motability users have been informed about huge new ‘compulsory’ changes coming into effect from April 13 for drivers. Some newly leased vehicles will be equipped with black boxes monitoring driving behaviour, including speed and braking, providing a weekly rating.
More than four red ratings within 12 months could result in drivers being removed from the Motability scheme, which enables eligible disabled people to lease a new car using part of their benefit payments. The new regulation will apply to all new first time leases, all customers aged under 30 and any with a named driver under 30.
During a trial in Northern Ireland from September, 300 vehicles were removed from disabled people. Motability said: “This means some drivers will have Drive Smart at the start of a new lease, while others will have it because of the age of a driver on the lease. Drive Smart is a simple way to help you stay safe on the road. We’ll share helpful tips and insights, so you can feel more confident behind the wheel. You’ll also be able to see how your driving improves over time.
“And there’s a reward for safer driving. If you drive safely, you could earn up to £160 a year in rewards. You can spend them with popular brands like Asda, MandS and Uber Eats.” However it adds: “If you or one of your drivers achieves a red weekly driving score, we’ll send you personalised advice based on your driving behaviour.
“If you or one of your drivers often get red weekly scores, your lease may be impacted and this could affect your ability to join the Scheme in the future.”
Critics argue the nationwide change will impact disabled people’s independence and capacity to work, yet Motability insists it is about “keeping prices down and keeping people safe”. The organisation states it has removed 300 drivers since a pilot scheme launched in Northern Ireland in September.
The development comes as tax changes take effect from July. Chancellor Rachel Reeves announced in her Budget in November that VAT will apply to Advance Payments, and Insurance Premium Tax will apply to Scheme leases. Motability has confirmed that the tax changes mean the average Advance Payment (upfront cost) of a vehicle will increase by around £400.
Nigel Fletcher, chief executive of the Motability Foundation, stated that the black box was about “keeping prices down and keeping people safe” and its data had additionally identified younger drivers as the highest risk.
Speaking about the 300 drivers removed from the scheme, he revealed one had driven 117mph in a 30mph zone. “This a serious safety issue, not just for that individual, but everyone else in that community.
“They will get lots of warnings before they get taken off the scheme. And then if they are taken off the scheme, we will need to start looking at what our policies are around allowing them back onto the scheme in the future.” Motability has also confirmed that every vehicle with a named driver aged 30 or under will have the device installed – which could include family members, friends and personal assistants (PAs) who get behind the wheel.
Alongside the black box, Motability has introduced guidance recommending that drivers take a break every hour and aim to complete no more than six journeys per day. Should this be exceeded, the driver will receive a red score, though it will not affect their lease.
The scheme has also cut in half the number of miles drivers can cover each year before incurring an excess charge.
Drivers will now be permitted to travel 10,000 miles before paying 25p on any miles beyond that threshold. Previously, the allowance stood at 20,000 miles with an excess charge of 5p per mile.
Motability states its average drivers cover 7,500 miles annually, while Scotland’s version of the scheme was still deliberating over the cap.
For more information on the changes click here.
