PIP mobility scheme offers £750 cash payment to people who may not know they can claim

The Motability Scheme offers individuals receiving disability benefits the chance to use their qualifying weekly mobility allowance of £75.75 towards leasing a new car, Wheelchair Accessible Vehicle, scooter, or powered wheelchair, providing greater freedom and independence. The initiative now proudly supports over 800,000 customers throughout the UK.

Eligibility extends to claimants of the higher rate mobility component of Personal Independence Payment (PIP), Disability Living Allowance (DLA), Child Disability Payment (CDP), or Adult Disability Payment (ADP). Many long-term beneficiaries of higher qualifying rates, or those new to claiming, might not yet know about a £750 New Vehicle Payment for first-time vehicle leasers.

This one-time payment can be used either to reduce an Advance Payment at the dealership or taken as cash by the customer post-vehicle acquisition.

Initially set to conclude for new patrons on December 31, 2024, Motability Operations has generously extended this offer till January 3, 2025, ensuring no one misses out due to closed dealerships during the holiday season.

Motability commented: "This is to give you a final chance to order your first car if your dealer is closed over the festive period.", reports the Daily Record.

The end date only impacts new customers, they clarified. 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.

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 referred to in Scotland for those on devolved disability benefits, some vehicles necessitate an upfront 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 known as a New Product Payment and is set at £100 - this is received once 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 have the option to choose a lease that utilises their entire mobility allowance - this is referred to as a variable lease. Full details on the latest updates to the price list can be found on the Motability website.

Electric Vehicles

Guidance on the website states: “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."

Some of the electric cars in the latest list include models with Advance Payments under £1,000.

What else is included in 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

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

Below is a quick guide on the Accessible Vehicles and Equipment Scheme and how to swap all or part of your mobility payment to lease a vehicle.

How the new scheme works

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

Social Security Scotland will help you pay 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

Applying to lease a vehicle for yourself

You can apply to lease a vehicle yourself if you meet all of the following:

• 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 someone’s behalf

Social Security Scotland also advises that you may be able to apply to lease a vehicle on behalf of someone else.

This might 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

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

• Choose a vehicle
• Find a dealership

When visiting a dealership, you need to present your certificate of entitlement. Social Security Scotland states that you will find this included in your decision award letter.

Find out more about Adult Disability Payment and leasing an accessible vehicle on the mygov.scot website here.