Update on £750 one-off payment for DWP PIP claimants | Personal Finance | Finance
The Motability Scheme, a lifeline for individuals on disability benefits, allows them to swap their weekly mobility allowance (£75.75) for a new car, Wheelchair Accessible Vehicle, scooter, or powered wheelchair, thus significantly enhancing their independence. The scheme’s latest figures show that over 800,000 customers across the UK are now reaping its benefits.
Those eligible include recipients of the higher rate mobility component of Personal Independence Payment (PIP) and Disability Living Allowance (DLA). However, it seems that some long-standing recipients or new claimants may be unaware of the £750 payment available to those leasing a vehicle for the first time.
This New Vehicle Payment for cars and Wheelchair Accessible Vehicles is a one-off bonus per customer. It can be used either as a contribution towards an Advance Payment at the dealership or received in full after getting the vehicle.
Initially set to end on December 31, 2024, Motability Operations has extended the deadline to January 3, 2025. Motability clarified the extension: “This is to give you a final chance to order your first car if your dealer is closed over the festive period.”
They also clarified that the end date only impacts new customers. If you haven’t already received the New Vehicle Payment, it will be included with your next car – even if that’s after January 3, 2025, reports the Daily Record.
You can verify your eligibility for the £750 payment using the Motability Scheme’s online tool. While leasing a vehicle through the Motability Scheme, or the Accessible Vehicles and Equipment Scheme as it’s known in Scotland for those on devolved disability benefits, some vehicles necessitate an advance payment.
It’s crucial to remember that both these schemes are managed by Motability Operations Ltd and adhere to the same eligibility criteria. For scooters and powered wheelchairs, it’s referred to as a New Product Payment and is £100 instead – this is received after the new equipment has been delivered.
Motability advises that you cannot receive both the New Vehicle Payment and the New Product Payment. Motability recently updated its price list for October and currently offers over 980 cars, including over 50 that require no advance payment, meaning the £750 New Vehicle Payment would go directly to the claimant.
People can opt for a lease that utilises their entire mobility allowance – this is known as a variable lease. Full details on the latest updates to the price list can be found on the Motability website.
Electric Vehicles
The latest guidance available on the scheme’s website notes: “As manufacturers move their attention to electric vehicles (EVs), we’re able to bring more choice to the Scheme. Their change in focus means that some petrol and many diesel models are being phased out.”
Highlighted on the most recent list is a range of electric cars, with Advance Payments starting below the £1,000 mark. The deal includes not only a brand-new vehicle but a raft of additional perks.
What comes with the lease?
You will get a brand-new vehicle and a full package which includes:
- Insurance
- Servicing and maintenance
- Full RAC breakdown assistance
- Yearly tax
- Three drivers – you can change these whenever you like
- Kwik Fit replacement tyres
- Windscreen repair or replacement
- 60,000 mileage allowance over three years, or 100,000 for WAVWheelchair Accessible Vehicles
- Many adaptations at no extra cost
Providing a quick overview, the Accessible Vehicles and Equipment Scheme allows individuals to exchange all or part of their mobility payment for leasing a vehicle.
