Government pressed to explain high Motability car registrations in Northern Ireland

The Motability Scheme allows those receiving the higher rate of Personal Independence Payment benefit to lease a car from the Motability charity. The benefit may fully cover the cost of cheaper cars, but more expensive options may require an upfront payment and extra contributions.

Speaking in the House of Commons on Monday, TUV MP Jim Allister raised concerns about the number of new cars being supplied in NI to Motability claimants.

"I have previously urged the Secretary of State to liaise with the Department for Communities in Northern Ireland over its pitiful pursuit of benefit fraud," he said.

"In the same vein, is the Minister aware that of the 39,000 new vehicles registered in Northern Ireland last year, 18,000 were under the Motability scheme? Is that not indicative of appalling abuse of that scheme? Will he raise with the Department for Communities what it is doing about that?"

Stephen Timms The Minister of State, Department for Work and Pensions, responded that the Motability scheme is "highly valued by disabled people around the UK".

If Mr Allister has examples of misuse of that scheme, "I would very much like to see them, but it is a scheme that is greatly prized right across the House" he added.

"I think he would discover that if he talked to other Members about it."

Expanding on his concerns yesterday, Mr Allister said he was "very clear" that the majority of claimants are genuine.

But he pressed home his concerns: "How can it be that virtually 50% of all the new cars in Northern Ireland are registered as Motability cars?"

The figures are "astounding" he said, "because not half the population is disabled, but half the cars which have been registered as new cars [in Northern Ireland] are registered under the motability scheme".

According to the 2021 Census for Northern Ireland only 24.3% of people here had a limiting long-term health problem or disability.

He said the scheme allows up to three people in a household to be registered drivers of a Motability Car, which he said was valid if this was used to transport a disabled person.

"But if it's a family car being used by the non disabled people as a vehicle at their disposal, then I think that does raise issues for those who save and scrape and finally are able to buy a car, to see others you're sailing about in a vehicle that has been provided by the state."

He claimed that the bigger issue relating to the Department of Communities (DFC) in Northern Ireland is that all welfare finances supplied by it come direct from the Treasury and so in his view there is "a disinclination" to chase fraud in Northern Ireland.

The Dail Maily reported this this week that Motability is responsible for one in five of all new cars sold in Britain.

Last year a record 815,000 people took advantage of the scheme, an increase of 170,000, it said.

A DFC spokesperson responded: “Motability is an independent voluntary organisation which is responsible for the administration of the Motability contract hire scheme”.

“The Department engages with the Motability scheme by paying across the mobility component of disability benefit payments to meet contract hire payments for claimants who wish to avail of the Scheme. The Department does not set the policy or administer the Motability scheme. Any alleged misuse of the Motability Scheme should be referred to the scheme operator to investigate”.

“The Department has a robust counter fraud and error strategy in place to tackle benefit fraud, including Personal Independence Payment cases where a claimant may have misrepresented their circumstances. Criminal investigations are undertaken for the most serious frauds and legal proceedings are instigated if appropriate.

"The Department works to continually strengthen its capability and effectiveness in this area to protect the integrity of the benefit system and the public funds that it manages”.