People on PIP could possibly be due £750 one-off fee – discover out in case your eligible

On Aug 9, 2024

The Motability Scheme allows individuals on disability benefits to swap all or part of their weekly mobility allowance (£75.75) for a brand-new car, Wheelchair Accessible Vehicle, scooter or powered wheelchair, providing them with greater freedom and independence. According to the latest data from Motability, approximately 690,000 customers across the UK are using the scheme.

However, many individuals who have been receiving higher rates of qualifying benefits for some time, or new claimants, may not be aware of a £750 payment available to those leasing a vehicle for the first time.

This is known as the New Vehicle Payment for cars and Wheelchair Accessible Vehicles and can only be claimed once per customer. Claimants have the option to direct the money straight to the dealer to contribute towards an Advance Payment, or they can choose to receive the full amount themselves after they get their vehicle

Those eligible for the scheme include recipients of Armed Forces Independence Payment, War Pensioners’ Mobility Supplement, and those receiving the higher rate mobility component of Personal Independence Payment (PIP) or Disability Living Allowance (DLA). In Scotland, it’s also open to those receiving the higher rate mobility component of Child Disability Payment (CDP) or the enhanced rate mobility part of Adult Disability Payment (ADP), reports the Daily Record.

If you’re considering leasing a vehicle through the Motability Scheme, or its Scottish counterpart, the Accessible Vehicles and Equipment Scheme, be aware that certain cars may require an upfront payment. Both schemes are managed by Motability Operations Ltd and share identical eligibility criteria.

For scooters and powered wheelchairs, there’s a different fee called a New Product Payment, which is £100 and is paid out after delivery of the new equipment. However, Motability makes it clear that claimants can’t receive both the New Vehicle Payment and the New Product Payment.

In a recent update, Motability has refreshed its price list for the period of July to September 2024, now boasting over 900 vehicles on offer. This includes more than 65 cars that don’t need any advance payment, allowing the £750 New Vehicle Payment to go straight to the claimant.

For those who wish to use their entire mobility allowance on the lease, there’s an option known as a variable lease. The latest updates and full details about the price list are available on the Motability website.

Electric vehicles

Regarding Electric Vehicles (EVs), the website’s new guidance highlights: “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.”

“We’re starting to see prices increase for those that continue to be available. But we’re still able to offer more than 115 cars with no Advance Payment, including popular models such as the Fiat 600 (down from £1,495) and Dacia Duster (down from £995).”

The latest list includes several electric cars with Advance Payments under £1,000.

What’s included in the lease?

The package includes a brand-new vehicle and a host of other benefits:

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

Full details on the Motability Scheme can be found on their website.

Here’s a brief guide on the Accessible Vehicles and Equipment Scheme and how you can use your mobility payment to lease a vehicle.

Understanding the new scheme

According to Social Security Scotland guidelines: “When you lease a vehicle through the scheme, it will be with our authorised provider, Motability Operations Ltd.”

Social Security Scotland will assist in paying the lease using all or part of either:

the higher rate of the mobility component of Child Disability Payment – £75.75
the enhanced rate of the mobility component of Adult Disability Payment – £75.75

How to apply for a vehicle lease for yourself

You are eligible to apply for a vehicle lease if you meet all of the following criteria:

You get the higher rate of the mobility component of Child Disability Payment or the enhanced rate of the mobility component of Adult Disability Payment
You are 16 or over
You are able to manage your own payments

Applying to lease a vehicle on behalf of someone else

Social Security Scotland also suggests that you might be able to apply to lease a vehicle on behalf of another person.

This could be an option if you’re either:

A parent or guardian of a child receiving the higher rate of the mobility component of Child Disability Payment
An appointee for someone who is receiving the higher rate of the mobility component of Child Disability Payment or enhanced rate of the mobility component of Adult Disability Payment

How to apply

To apply to lease a vehicle using the scheme, visit the Motability website where you can:

Choose a vehicle
Find a dealership

When popping into a dealership, it’s essential to bring along your certificate of entitlement. According to Social Security Scotland, this will be included in your decision award letter.

For more information about Adult Disability Payment and leasing an accessible vehicle, visit the mygov. scot website here.