My Lords, I am grateful to all noble Lords who have contributed to this debate. In responding, first, I will address the points that I have put under the heading of “uprating” and then come to issues linked specifically to Motability and PIP. I want to make it clear, as I think the noble Lord, Lord Alton, acknowledged, that this Bill, which is about capping the annual increases of certain benefits to 1%, does not include DLA or personal independence payments. It is really important that that is properly understood by everyone when we are discussing this matter.
If I understood the noble Lord, Lord Alton, correctly, having acknowledged that PIP is not part of this Bill, his amendment would seek to require the Secretary of State to consult Motability every year before he sets the annual rate of increase on PIP. However, I do not think that that is necessary. As I have said, PIP is excluded from this Bill and would be subject to a CPI increase. If there were any shortfall in the benefits over the course of a three-year lease and if the PIP annual uprating was to affect the level of benefit that a person was due to receive, any change in the rate of the enhanced mobility component would not impact on a claimant with a Motability lease directly because that would be borne by Motability as part of the risk to it of operating the lease.
Governments have worked with Motability for more than 30 years and, as I understand it, thus far we have never required protection for Motability leaseholders in the way that the amendment suggests. As noble Lords are well aware, the Motability lease is a private agreement between the claimant and Motability. It is entered into without any influence from the department. As the noble Baroness, Lady Hollis, said, just under one-third of eligible claimants uses Motability.
That being said, I absolutely understand the points made in this debate about how those who take advantage of the Motability scheme value the vehicle provided. Therefore, it is essential that Motability remains available to those deemed eligible to receive it. Sometimes, as regards the way in which noble Lords talk about the changes that are being made, the impression could be given that the Motability scheme is coming to an end for everyone. We absolutely understand the importance of Motability. It is an important scheme and people must continue to have access to it, albeit that fewer numbers will have access than up to now.