Reversing Recovery Report

The grass roots team that brought us the Responsible Reform Report (known to many as the Spartacus Report) have launched a new report called Reversing Recovery. You can see pdfs of the summary or full version by clicking these links and if you go to the website there are links to accessible formats too. 

For those that don’t have time to read the report here is the press release whic nicely summarises the main points raised by Reversing Recovery; 

New report warns car industry to lose out under welfare reform plans

A new report has highlighted the dangers to the UK’s economy following an analysis of the impact of welfare reform on the motor industry.

‘Reversing from Recovery’, published by the WeareSpartacus campaign group, analyses figures supplied by the Department for Work and Pensions and Motability, the organisation that supplies lease cars to disabled people claiming Disability Living Allowance. The report focusses on some of the impacts of the government’s plans to reform Disability Living Allowance (DLA), and its proposal to remove 280,000 disabled people from claiming the higher mobility rate of DLA, which currently qualifies them to lease a car under the Motability scheme.


The analysis estimates that, under DLA’s replacement benefit, Personal Independence Payments (PIP), there will be a 27% reduction in the number of working age disabled people, and a 17% reduction in the number of disabled people overall, qualifying for the Motability scheme. 


Motability’s publication ‘Economic and social impact of the Motability Car Scheme’ (2010) identified the scheme’s contribution to the economy through employment generation and tax receipts. The new report shows that welfare reform plans will lead to a domino effect including the loss of:

·         3,583 jobs (from 21,080 jobs to 17,497 jobs in Motability-related industries)

·         £342 million contribution to GDP (from around £2 billion to £1.67 billion)
·         £79 million in tax receipts
·         Up to £324 million contribution to GDP from disabled people’s ability to undertake paid work.

Jane Young, an independent disability consultant who co-authored the report, said: 

“It’s not just disabled people who will lose out under the Government’s welfare reform plans. Changing from DLA to PIP means fewer people qualifying for Motability cars to the tune of about 31,000 fewer vehicles a year. Less demand means fewer jobs for the car manufacturing industry, a lower contribution to GDP and the exchequer, and a knock on effect on the availability of cars in the second hand market, which also contributes to the economy.”

The report also raises concerns about future investment in the UK by car manufacturers, given the demand for new cars is going to drop as the government phases in its plans.


Rob Parsons, an Open University lecturer who also contributed to the report, added: 

“We must remember, of course, that part of this picture is the impact of these changes on disabled people themselves.  85% of Motability car users say the car has a positive impact on their ability to access health services, whilst more than 1 in 3 of those able to work say it maintains or improves their ability to undertake paid employment. 7% of customers’ families say it enables a family member to gain or keep a job.“We’ll see disabled people less independent, less likely to be able to get or keep a job and more likely to close businesses or give up self-employment. Having welfare reform plans which interfere with employment prospects is nonsensical. The Government should think again.”

The report is calling on the Government to give further consideration to the wider consequences of disability benefits reform, including consulting more widely, before finalising the regulations under the Welfare Reform Act.

For more information or to obtain a copy of ‘Reversing from Recovery’, the full report or summary version, contact:

Notes for editors:


·         ‘Reversing from Recovery’, both the full report and the summary version, will be available to download from http://wearespartacus.org.uk after publication (25 June 2012)

·         Disability Living Allowance (DLA) is a benefit that helps individuals meet the additional costs that come from living with a disability and is payable to people in work as well as out of work
·         Details of the Government’s proposals for PIP, including projections of the number of people expected to be eligible for the enhanced mobility rate, can be found in the DWP consultation document, ‘Personal Independence Payment: Assessment thresholds and consultation’ (January 2012), available at http://www.dwp.gov.uk/consultations/2012/pip.shtml
·         The Motability publication, ‘Economic and social impact of the Motability Car Scheme’ (2010), is available for download at http://www.motability.co.uk/documents/PDFs/OEReport.pdf
·         The WeareSpartacus campaign group is an internet-based group of disabled and sick people from around the UK which campaigns for welfare benefits and social care services that enable disabled and sick people to live independently and with dignity.

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