New update on £750 payment available to DWP PIP claimants

The Motability Scheme offers individuals on disability benefits the opportunity to exchange all or part of their qualifying weekly mobility allowance (£75.75) for a new car, Wheelchair Accessible Vehicle, scooter, or powered wheelchair, enhancing their freedom and independence. Recent statistics from the organisation running the transformative Motability Scheme reveal that over 800,000 customers are now benefitting UK-wide.

Eligibility extends to recipients of the higher rate mobility component of Personal Independence Payment (PIP) and Disability Living Allowance (DLA). Yet, it appears some long-term beneficiaries of higher rates or new claimants might not know about the £750 payment offered to those leasing a vehicle for the first time.

Known as the New Vehicle Payment for cars and Wheelchair Accessible Vehicles, this bonus is a one-time offer per customer. Options include applying the sum directly to the dealer to contribute towards an Advance Payment or receiving it in full post-vehicle acquisition.

Initially set to conclude for new customers on December 31, 2024, Motability Operations has now extended the deadline to January 3, 2025. Motability explained: "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 guidance on the website explains: "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."

Featured in the latest list of offerings are electric car models with Advance Payments under £1,000. Included in the lease is a full package which encompasses a brand-new vehicle along with additional benefits.

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

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.