DWP PIP and DLA claimants issued update on one-off £750 payment

People receiving disability benefits can exchange all or part of their qualifying weekly mobility allowance for a number of new items. Through the Motability Scheme, they can use £75.75 for a new car, Wheelchair Accessible Vehicle, scooter, or powered wheelchair.

More than 800,000 customers are now benefitting from the scheme across the UK. Eligibility extends to recipients of the higher rate mobility component of Personal Independence Payment (PIP) and Disability Living Allowance (DLA).

But it seems that some people may not know about the £750 payment offered to those leasing a vehicle for the first time. This bonus - known as the New Vehicle Payment for cars and Wheelchair Accessible Vehicles - is a one-time offer per customer.

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People can choose to send the money directly to the dealer to contribute towards an Advance Payment or receiving it in full post-vehicle acquisition. It was set to come to an end for new customers on December 31, 2024.

But 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."

It also clarified that the end date only impacts new customers. If you have not already received the New Vehicle Payment, it will be included with your next car - even if that is after January 3, 2025, the Daily Record reports.

You can verify your eligibility for the £750 payment using the Motability Scheme's online tool. The Motability Scheme is known as the Accessible Vehicles and Equipment Scheme in Scotland - and some vehicles require and advance payment.

Both schemes are managed by Motability Operations Ltd and follow the same eligibility criteria. For scooters and powered wheelchairs, it is referred to as a New Product Payment and is £100 - people get this after the new equipment has been delivered.

Motability says that you cannot get both the New Vehicle Payment and the New Product Payment. It recently updated its price list for October and currently offers more than 980 cars, including more than 50 that require no advance payment.

This means that 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. 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." 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 here on its website.