Accessible Vehicle and Equipment Scheme Quarterly Meeting minutes: Dec 2024

Attendees and apologies

• David George, Chair, Disability Benefits Reform Team Leader
• Paul Feeney, Disability Benefits Senior Policy Officer
• Sarah Manson, Disability Equality Unit Head
• Norma Mackenzie, Supplier Relationship Manager, Social Security Scotland
• Angela Munro, Administration Assistant

Attendees from Motability Foundation and Motability Operations

• Nigel Fletcher, CEO, The Motability Foundation
• Gavin Thomson, Managing Director for Scotland, Motability Operations
• Bernie Cowper, Oversight Manager, the Motability Foundation
• Kenny Morton, Motability Operations

Apologies 

• Andrew Miller, CEO, Motability Operations
• Edward Curwen, Innovation Manager, Motability Operations
• Natalie McCrindle, Head of Procurement and Commercial, Social Security Scotland
• Shonagh Martin, Disability Benefits Policy Officer, Scottish Government

Items and actions

Welcome

The Chair, David George welcomed members to the twelfth Accessible Vehicle and Equipment (AVE) Scheme quarterly meeting.

Previous meeting minutes and action point update

The minutes from the previous meeting were agreed and formally approved by the group. 

The following updates were given on the previous actions.

Action 1: Kenny and Norma to hold further discussions ahead of the next invoice.

At the last meeting, officials confirmed that they had met with Motability Operations (MO) and the invoices for both the 2023-24 6-month periods had been raised. MO noted that they would like more details ahead of the next invoice.

Norma confirmed that discussions are ongoing. Sajda Kayani (Business Owner), Norma and Kenny have a touchpoint call fortnightly. Sajda has an action to set up a call with the ADP AVE team to discuss internally the resourcing profile needed to efficiently and effectively administer the scheme. 

As AVE is becoming much busier, they have put in place a dedicated AVE team from 1 October 2024. An invoice is to be raised for first 6 months up to 30 September.

The outcome of the planned discussion must be to provide a robust model (i.e. projected levels of entitlement to higher rate disability benefits, an assessment based on these levels of the resource effort required, for Finance to overlay this resource plan with the staff and overhead costs). Only then will they be able to provide an indication to Motability of the probably recharge costs over future 6 month recharge periods.

MO informed that they now forecast fleet size up until 2029. Forecasts are carried out using figures from the Department for Work and Pensions (DWP) so any variance from this in Scotland would be useful. This action is ongoing.

Action 2: Officials to let MO know when the Evaluation has been published. 
Background: At the last meeting, officials gave an update on the AVE evaluation. MO asked to be informed when this has been published.  

Officials confirmed that this action can be closed as MO are aware that the AVE evaluation has been published. 

Action 3: MO to write to Scottish Ministers to provide them with an update on the changes to the NVP.

At the last meeting, MO confirmed that the New Vehicle Payment (NVP) would stop at the end of this year as MO only committed to this payment for a limited time.

MO will provide an update on this later in the meeting. This action can be closed. 

Scottish Government update 

Officials provided the following Scottish Government updates. 

AVE evaluation report

The AVE Evaluation Report was published on 17 September 2024. The details of this were shared at the last quarterly meeting. Officials can share again upon request. 

Officials thanked Motability colleagues for providing information for the evaluation and will keep in touch if there are any further updates.

Redacted

Motability Operations update 

MO colleagues highlighted that they now have over 830,000 customers across the UK as at the end of November 2024 and this is growing quickly. From the end of Quarter three, over 10 percent of these customers resided in Scotland. The Scottish fleet represents 10 percent of the 814,000 vehicles in the overall Scheme. 

Electric Vehicles (EVs) represent 7 percent of the Scottish fleet, 78 percent are petrol/diesel. This has fallen by 2% since the end of Q2. The number of petrol/diesel cars continues to fall quarter upon quarter. Battery electric vehicles are looking promising. 

Application volumes slowed down with orders at 65,000, while in August orders were at 80,000. Customer satisfaction remains high with overall satisfaction recorded at 96/100 for cars. Scottish customers also reported 96/100. Pricing is better than expected, as there have been stronger discounts from manufacturers. 

The average Advanced Payment in Scotland increased this quarter by £309. The Advanced Payment is reduced by the £750 New Vehicle Payment (NVP) which runs until the end of 2024. In January, the NVP will end, therefore customers may be impacted by this. MO have increased the choice of vehicles on the Scheme; however, affordability is challenging.

In comparison to the market, MO is still strong with year on year growth. There have been challenges across the market overall. The used car market looks stable, last year MO sold 237k second hand cars back into the trade market. The Battery Electric Vehicles (BEV) market looks promising. 

MO colleagues informed there are two key challenges:

• the transition to electric Vehicles
• managing growth

MO wrote to the Cabinet Secretary who offered a meeting. This has not been scheduled yet. They also wrote to the and Co Cabinet Secretary but have not heard back yet.

Redacted

They have already written to Cabinet Secretary for Transport, Fiona Hyslop MSP and Minister for Equalities, Kaukab Stewart MSP outlining external factors affecting pricing. 

MO are looking at ways to reduce costs to customers and to ease any barriers to zero emission cars. Funding is challenging for new customers as increase in pricing continues but this affects the overall market, with insurance costs also set to rise. 

MO are looking at ways to reduce costs through wholescale business transformation, using digital solutions to improve processes. They are also looking at whether they need to increase insurance excesses to match the private market. Where MOs excess charges are around £100, the private market charges £600-£700. 

MO are also working on their Wheelchair Accessible Vehicles (WAV) strategy. They had over 9,000 applications this year, an increase on 7,000. Their fleet size has increased to 30,000.

Officials requested an update on power add-ons and segways. MO informed that there have been three applications, and all were in receipt of Disability Living Allowance so still to transfer to Adult Disability Payment. RGK Wheelchairs is now on board as one of their new suppliers. 

Action 1: Add WAVs to the MO update on agenda at next meeting.

Motability Foundation Update

Motability Foundation (MF) highlighted their strategy to provide:

• more affordable transport
• more accessible transport
• improve policy and social change

Their Board of trustees approved a series of strategic planning assumptions:

• no donations from MO
• maintain a flat spend of 130 million 
• a minimum commitment from Motability scheme trustees of 70% of charitable spend on Motability scheme related activity

MFs top priorities were highlighted:

• Motability Scheme oversight
• To help those most in need to access the AVE scheme
• Grant Programme Rationalisation

MF has a strategy which protects charitable spending over medium term. Changes are necessary to ensure MF continues to give support to those most in need.

MF highlighted the governance arrangement they have with DWP and a request to understand what elements the Scottish Team would want to have equal representation in. 

Redacted

MF provided an update on advocacy including PAS 1899, Accessible Vehicle Design, Planning policy on home charging. Government mandating is now required for accessible charging and infrastructure. MF informed that they met with the UK Government Minister for Disability to discuss this. There is fiscal inequality of charging costs when a private home charger is available, and MF have found that private and local authority landlords are not permitting tenants to install home electric chargers. MF are happy to share case studies on this.

Action 2: MF to share case studies on private and local authority landlords not permitting tenants to install home electric chargers.

Scotland Operational update

MO highlighted that two Motability scheme partners were up for renewal. The average proportion of AVE scheme users aged 65 or over is now 33%, down from 37%.

Officials asked whether there were any actions taken by MO around people’s hesitancy to make the transfer to Electric Vehicles (EVs). 

MO colleagues have carried out surveys on the reasons and the main reason is price of vehicles (higher Advance Payment) and the price of charging, particularly public charging. MO are sharing information on their website on the real world usability of EVs. 

MO held an EV Focus Group of Motability Scheme Customers at their Big Event in September, observed by representatives from Consumer Scotland, Social Security Scotland and Transport Scotland. 

The summary outputs have been shared. Motability have had follow up discussions with Consumer Scotland and ongoing engagement with Transport Scotland to improve access to convenient affordable charge points for those unable to have a home charger installed due to current planning rules.

Officials asked how they would encourage people who are used to fuel vehicles to transfer to EVs. MO informed that Government OEM manufacturers are eventually going to force people to transfer by withdrawing ICE vehicles from sale. MO is working to ensure that transition is viable for all Scheme Users, not encouraging early transition.

Innovation update  

MO highlighted their Orkney service improvements. There are 155 AVE scheme users in Orkney and no participating dealers of EVs in Orkney. A dedicated team has been created for Orkney service users and MO have created a team there but are still setting up the test drive facility. MO expect that to launch this quarter.

MO provided an update on their Big Event with the following points made: 

• 87% of customers said the event was worthwhile
• 90% of customers said that they would attend again
• the next one will be held in Northern Ireland and the events will be bi-annually
• there is a separate Arnold Clark event on 7 May 2025

MO provided an update on their two hour EV customer focus group with members recruited from their Headlight community. 

Key findings were as follows:

• public charging infrastructure is still seen as lagging behind demand
• many EV owners are pleasantly surprised by the ease of driving of EVs and lower running costs
• reliable information is key for a confident vehicle choice

MO highlighted the Arnold Clark Charging initiative, which is now live at 40 sites, 18 of which are in Scotland. There was a soft launch with marketing invites sent out to Arnold Clark customers living within a 20 mile radius of active sites. Data was provided on the number of AVE scheme users using the charging sessions.

MO informed that a Home Charging pilot has been agreed with Edinburgh City Council. They will be selecting pilot participants for Quarter one participants.

Officials asked why MO were focussing on Orkney. MO colleagues informed that it is a centre for renewable energy innovation with a reputation for successful delivery of pilot projects for Net Zero projects. 

Officials asked if the number of people invited to the Arnold Clark charging initiative reflected who lived near these sites. MO informed that it was those within a 20 mile radius of the charging sites.

MO are planning for the Arnold Clark Charging initiative to be broadened out to all Motability customers around April 2025. They are using a staggered approach to opening the initiative up. MO highlighted that Arnold Clark sites are often close to areas of social housing and that they are the only dealer that has invested in this technology and infrastructure making them ahead of the market.

Officials asked whether the Orkney project would be addressing winter fuel poverty and the timescales for this. 

MO informed that they are waiting for directional chargers for type 2 cables to roll out. They have a meeting with the manufacturer on 12 December 2024 to get this off the ground. 

Officials asked MO whether they had any engagement with disabled people’s organisations or with the Mobility and Access Committee for Scotland (MACS).

MO and MF met with the MACS lead at their Big Event. They have another meeting this Friday 13 December meeting to give an overview of MF and MO. They intend to meet with MACS regularly to ensure Disabled People Organisations engagement.

AOB and Close 

MO informed that there have been challenges around their financial position which they have planned for, but in their annual report they will be reporting sizeable losses. MO have no concerns around the sustainability of the scheme as they have built up reserves knowing about these. Costs reductions and initiatives were discussed earlier in the meeting. These losses currently tie in with the entire auto industry. 

The next meeting is scheduled for Tuesday 11 March 2025, 11:00 – 12:30. 

The Chair closed the meeting.