For the first time in years, questions surrounding the future of the MOT are being driven by the aftermarket, and not government. The main focus is the MOT price, which has not changed in 16 years. The question of how it should change, if it were to do so, is open to interpretation.
The current MOT price cap of £54.85 has remained resolute despite changes in pricing across the last few years. With a cost-of-living crisis and inflation rising, workshops are finding their MOT fees squeezed, with some highlighting the current situation is unsustainable.
There are different ways of looking at the future of the MOT price. Both the Independent Garage Association (IGA) and the Independent Automotive Aftermarket Federation (IAAF) have presented ideas, designed to help garages charge a fair amount for the MOT.
Increasing the MOT price cap
The IGA led the call last year for a change in the MOT price cap. Highlighting that the maximum fee a workshop could charge has not changed since 2010, it called for a fair increase to ensure garages could still receive compensation for their work, skill and investment, especially with costs elsewhere rising.
The industry body has now secured direct talks with the government on the matter. It plans to state the case that a significant rise in the MOT price cap is necessary. It argues that inflation alone makes the current MOT fee unsustainable; however, inflation is only part of the picture.
Garages have also faced additional cost pressures relating to labour, rent, equipment, fuel, energy, compliance, administration and staff training meaning the MOT fee should be at least £95.
“It is a fact that the current MOT fee has remained static for 16 years,” commented Stuart James, Chief Executive of the Independent Garage Association. “We are being advised by garage owners that without a significant increase to the MOT fee, they cannot continue to sustain this ever-increasing cost burden.
“As the representative body for the independent garage sector, the IGA will continue to challenge the Government to deliver an acceptable resolution to this issue before it causes a level of consumer detriment.”
A recent survey of IGA members demonstrated strong support across the independent garage sector for an increase to the MOT price cap. Garages have also been clear about the commercial pressures they are facing. Comments from IGA members indicate that a growing number are already reducing MOT capacity.
Minimum not maximum
The IAAF agrees that the MOT price needs to change. However, it is offering an alternative view. Rather than increasing the current cap of £54.85, it believes this should be the minimum price that garages can charge, with workshops allowed to set their own prices beyond that.
In a new white paper, the IAAF states that a request for a new MOT price cap may be difficult to achieve. Any increase in costs could prove to be a political point that would not sit well with voters. The IAAF agrees that with inflation taken into account, the MOT price cap should have risen to around £95 by now.
Instead, it believes that adding a floor at the existing cap, and leaving the headline maximum untouched, it converts the MOT into a viable business case. This would also help to fund investment into new equipment to meet other areas the IAAF is requesting are added to the MOT, including PN testing for diesels.
The move for a minimum MOT price also removes government arguments that PN testing would involve too much cost and has therefore deferred its addition.
“Inflation alone would justify an MOT fee of around £95 today,” Mark Field, Chief Executive of the IAAF added. “We are not asking for that. We are asking for a floor at the price that has already been frozen since 2010, so that the garages carrying out these PN tests properly can afford the equipment they need. This is not about increasing costs for motorists; it’s about removing the only reason Government itself has consistently given for delaying implementation.”
A round table discussion
The IMI has now also responded to sector-wide calls regarding a review of the MOT price. The industry body is working with the DVSA to host an industry roundtable on 21 October.
The collaborative event will bring together trade associations, road safety organisations and other stakeholders to discuss the economic challenges currently faced by MOT garages, as well as the increasing requirement for investment in equipment and skills for new automotive technologies such as EVs and ADAS.
“The MOT test is fundamental to road safety and it is critical that it remains accessible to motorists,” stated Nick Connor, CEO of the IMI. “However, with MOT garages increasingly facing greater demands, such as the EV mileage checks when the eVED comes into force in 2028, a review of MOT fees is urgently overdue.
“Last changed in 2010 the fee structure has clearly not kept pace with the costs faced by MOT garages, from cumulative inflation and rising energy bills to equipment costs and critical technician training. By hosting the roundtable our goal is to provide a forum for all parts of the sector to discuss the cost pressures faced by MOT garages alongside motorists’ expectations and to identify the best solution.”
Stakeholders interested in participating in the roundtable, or contributing to the IMI’s forthcoming research into MOT testing pressures, are invited to register their interest by emailing ceooffice@theimi.org.uk.
The need for change
In a letter sent to the IMI and seen by Auto Repair Focus, prior to its announcement of a round table event, Ian Wills, Managing Director of The Test Centre, highlighted the reasons why the MOT price needs to change.
“Since 2010, cumulative inflation has increased by around 65–70%, dramatically reducing the real value of the MOT fee. In effect, the statutory fee today is worth only a fraction of what it was when it was last reviewed. Meanwhile, virtually every cost associated with delivering an MOT has increased significantly,” he wrote.
These increased costs for workshops include the National Living Wage and staff salaries, Employer National Insurance contributions, business rates, rent and property costs, electric and utility costs, alongside investment in equipment, qualifications and DVSA compliance.
“Every year, the industry is expected to invest more in people, technology, training and compliance while being restricted to charging the same statutory fee introduced over sixteen years ago,” Wills added.
He went on to voice concerns that there is an assumption within some parts of the industry that MOT costs could be recouped through repairs identified during the inspection, adding that should it exist, this assumption is fundamentally flawed.
“The MOT should never depend on repair income to remain commercially viable,” he wrote. “A funding model that assumes repairs will subsidise the inspection risks creating commercial incentives that are inconsistent with the principle of an independent road safety test. The statutory MOT fee should reflect the true cost of carrying out the inspection itself.”
What next?
Calls for a change in the MOT price must be handled delicately, however it does seem that movement is occurring that could prove positive.
In a recent Auto Repair Focus survey, 87% of workshops responded said that the current MOT price cap is not fit for purpose. However, the proposal for what to do next was split, with 54% liking the idea of a MOT price cap increase, and 46% favouring a minimum recommended amount.
As talks with government progress, any change in MOT price is likely to be introduced at a time preferable to politics. The next UK Budget will take place on 28 October, a week after the IMI round table. This may not provide enough time for a true announcement, but a consultation could still be launched, to allow for wider views into the issue.
One thing is clear, the aftermarket is firmly taking back control of the MOT, and arguing for change that will benefit the industry, rather than against change that will impact road safety.
