§ Mr. Alfred Morrisasked the Secretary of State for Social Services if he will make a statement on Motability's decision to cease trading.
§ Mr. PrenticeMotability is a voluntary body, independent of Government, which operates a car leasing scheme for disabled people. Under the scheme, a disabled person who receives mobility allowance may lease a car, maintenance and repairs included, in return for the mobility allowance. The lessee has to pay for petrol and insurance, and to pay an advance rental which varies according to the car chosen and the type of adaptations needed, if any. Motability is in the process of raising charitable funds in order to help applicants who find it impossible to find the advance rental from their own resources.
My understanding is that rising car prices resulted in a situation in which the advance rentals would need to be in-creased. I understand that for this reason Motability ceased some weeks ago to issue new leases, until they could assess the implications for their scheme of the Budget Statement. Although the increase in mobility allowance from £10 to £12 a week in November will help, Motability's assessment is that the net effects of the measures are such that the advance rentals will still need to be increased substantially over previous levels, and they have decided to continue to suspend the issue of new leases.
Motability have asked the Government to examine the implications of the Budget measures and to consider relieving the organisation of value added tax. This is being urgently considered at present by my right hon. and learned Friend the Chancellor of the Exchequer.
The Government support the excellent work which Motability does for disabled people and are of course looking at its problems with sympathy.