Policy background Expenses of paying sums in respect of vehicle hire etc
The Motability scheme leases and sells motor vehicles to disabled persons in receipt of a qualifying benefit. The Government facilitates this arrangement by diverting the benefit payments of participating claimants to Motability Operations Ltd, so they do not have to collect the money themselves. This is of direct benefit to Motability.
	The cost of administering these payments varies annually, although it currently stands at under £1 million. Although Motability has indicated they are willing to pay these costs, the Government does not currently have the power to recover them. The Act enables the Secretary of State to make regulations for doing so. Motability are supportive of this and have provided assurance that the expenses incurred will be absorbed by the scheme and not result in any changes to customer pricing.
	Although Motability is currently the only organisation running a discounted vehicle scheme for disability living allowance/personal independence payment claimants, the provisions would apply to any scheme that is equivalent in purpose.