Rachel Reeves may look to reform the Motability scheme.

Rachel Reeves is reportedly planning a £1bn savings package through cuts to the Motability scheme offered to disabled people.

As part of a drive to plug a £30bn hole in the public purse, the Chancellor is considering reducing the number of BMWs and Mercedes some disability claimants can access through the Motability scheme, which is largely funded by the government.

Up to £1bn in savings are set to be made through eliminating VAT and insurance premium tax reliefs offered under the scheme, according to The Times .

Reeves could also restrict which benefits recipients are eligible for free cars but those reforms could take longer to be introduced.

Social security and disability minister Stephen Timms is still conducting a review

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