Iain Duncan Smith, Work and Pensions Secretary, has requested that costs are cut by Motability, in regards to fraudulent claims.
There are currently 575,000 motability vehicles on the roads of Britain but a small percentage of these have been obtained fraudulently.
Some parents of children suffering from ADHD have been awarded cars and several thousand drink and drug abusers fall eligible under the current guidelines through their motability allowance.
Claimants will now have their allowance availability slashed to a maximum of twenty five thousand pounds, with models such as Toyota Land Cruisers and BMW X3’s (worth £37k), which are currently available, being removed from the list of cars available through the scheme.
The cuts are being carried out in a bid to minimize abuse of the system and cut back on fraud.
To reduce insurance costs anyone under the age of 21 is to be totally excluded from the scheme, with some exceptions, and people under the age of 25 will not have access to vehicles with a high speed capability.
The greatest number of claimants are eligible due to arthritis – totalling 506,300, with 123,900 sufferers of unspecified back pain and 28,700 asthma sufferers.
The average cost of a Motability vehicle is £19,500 and the Motability scheme chairman, Lord Sterling, said that the £1.5 billion a year scheme was subject to 7144 fraud and abuse allegations in the last year, many of which resulted in police prosecutions.
A disability spokesman said that millions would be spent testing people with genuine disabilities, an amount that is disproportionate to the hundreds of thousands which the Government would be cutting from support.