Many claimants will miss out on crucial payments as the Motability scheme ends key benefits this month
Birmingham: So, here’s the scoop. If you’re on Personal Independence Payment or Disability Living Allowance, you might be in for a rough month. Starting now, you could miss out on up to £750 because the Motability scheme has scrapped some key payments.
They just got rid of the £750 New Vehicle Payment and the £100 New Product Payment for those needing wheelchairs or scooters. These payments were meant to help cover upfront costs for new cars, but now they’re gone. If you were planning to get a new vehicle, you’ll have to pay all those fees yourself.
Now, I know what you’re thinking. Advance payments can be pretty steep. For example, while you won’t need to pay upfront for a Vauxhall Corsa, the Peugeot e-3008 will set you back at least £1,499. Ouch!
The whole idea behind the Motability scheme is to give people more independence, especially those who qualify for higher mobility benefits. This includes folks in Scotland with similar benefits and even some veterans.
Motability has acknowledged that rising costs, like insurance and car prices, have made things tougher. But they still claim their scheme is cheaper than other leasing options out there.
Andrew Miller, the CEO of Motability Operations, mentioned that inflation and energy prices are hitting everyone hard. They’re trying to work with car manufacturers to keep things affordable for their customers.
Even though some upfront payments have gone up, they say it’s not as bad as what you’d find with other leasing services. Plus, they still have over 60 vehicles available with no upfront cost, which is a win for many.
Motability is a big deal, helping around 815,000 people with everything from a new car to insurance and maintenance. They even handle car tax for those on higher-rate benefits, so that’s one less thing to worry about.
Just a heads up, if you want to transfer your tax exemption to another vehicle, you’ll need to pay tax on your Motability car. And remember, only one vehicle can be tax-exempt at a time.
If you’re on the standard rate of PIP, you won’t get full car tax exemption, but you can snag a 50% discount. To get that, you’ll need to send some paperwork to the DVLA.
And if you’re a parent or guardian of a child on higher-rate mobility support, you might be able to lease a vehicle for them. Just make sure you have all the right documents ready!
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