Motability has admitted that up to 100,000 disabled people could have to hand back the vehicles they lease under its car scheme, because of the government’s cuts and reforms to disability living allowance (DLA).

Motability currently has about 600,000 customers, who all use their higher rate mobility component of DLA to lease a vehicle.

But the government’s reform of working-age DLA, which will see it replaced by a new personal independence payment (PIP), will involve cuts of 20 per cent to spending by 2015-16, with an estimated 500,000 working-age disabled people losing their right to DLA/PIP.

Disabled people will only continue to be eligible to lease a vehicle through the Motability scheme if they are awarded the PIP enhanced mobility element.

Motability admitted for the first time this week, during a workshop at a conference organised by Disability Rights UK, that an estimated 100,000 of its customers – based on government forecasts – could lose their eligibility for the scheme over the three years to 2016.

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