PIP update for Motability Scheme that includes little-known £750 benefit

Large numbers of people on benefits are flocking to make use of support that can help when getting a new car. New data from the company responsible for the transformative Motability Scheme reveals that there are now more than 800,000 customers across the UK.

The scheme is growing in popularity. It allows individuals who receive a disability benefit, with an award for the higher or enhanced rate of the mobility component, to allocate some or all of the payment towards leasing a new car, wheelchair-accessible vehicle, scooter or powered wheelchair.

Individuals receiving Personal Independence Payment (PIP), Disability Living Allowance (DLA), War Pensioners' Mobility Supplement (WPMS) and Armed Forces Independence Payment (AFIP) are eligible to join the scheme. In addition to a new car, customers also gain insurance, breakdown assistance, servicing, maintenance, tyres and windscreen repairs as part of the package.

The most recent price list for leasing packages has been released on the Motability Scheme website. And it reveals a selection of more than 950 vehicles.

When selecting a car or wheelchair-accessible vehicle, it's crucial to note that while some options only require the use of part or all of the mobility award payment (£75.75), others may ask for an upfront fee ranging from £100 to £2,000. Andrew Miller, CEO of Motability Operations, highlighted the increasing costs drivers face nationwide due to inflation and energy price hikes, reports the Daily Record.

He also pointed out the pressure on car manufacturers to hit sales targets amid the UK's shift to electric vehicles, which could mean more cars on the Scheme might need a higher advance payment. He commented: "We're working with car manufacturers and our partners with the aim of providing our customers with stand-out value and the Scheme is 45 per cent cheaper on average compared to alternative options."

Miller added: "During this period of rising costs and an unprecedented period of change for the car industry, we're committed to ensuring the sustainability of the Scheme so that we can continue to keep our customers connected now and in the long term."

However, there's a lesser-known benefit for many who have been receiving higher rates of qualifying benefits for some time, or new claimants: a £750 payment available to those leasing a vehicle for the first time. This can be put towards a new lease.

The New Vehicle Payment for cars and Wheelchair Accessible Vehicles is a one-time offer per customer. The funds can either be sent directly to the dealer to contribute towards an Advance Payment, or paid in full to the customer after they receive their vehicle.

For scooters and powered wheelchairs, there's a £100 New Product Payment, which is received after the new equipment has been delivered. Motability advises that customers cannot receive both the New Vehicle Payment and the New Product Payment.

The latest Motability price list offers over 950 cars, including more than 45 that require no advance payment, meaning the £750 New Vehicle Payment would go straight to the claimant. Customers can opt for a lease that utilises their entire mobility allowance, known as a variable lease.

As manufacturers shift their focus to electric vehicles (EVs), the scheme is able to offer more choice, officials say. This change means that some petrol and many diesel models are being phased out.

The latest list includes 209 electric cars, with 42 models having Advance Payments under £1,000. However, these figures may vary, but can be checked on the Motability Scheme website.

The lease also includes a brand-new vehicle and a comprehensive package. Full details on the Motability Scheme can be found on their site.

Here's a brief rundown on the Accessible Vehicles and Equipment Scheme. It allows you to use all or part of your mobility payment for leasing a vehicle.

Electric vehicles

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 209 electric cars in the new list include 42 models with Advance Payments under £1,000. But be aware these figures may change.

What else is included in the Motability lease?

You will get a new vehicle, along with a full package that includes:

• 60,000 mileage allowance over three years, or 100,000 for WAVWheelchair Accessible Vehicles
• Kwik Fit replacement tyres
• Many adaptations at no extra cost
• Servicing and maintenance
• Insurance
• Yearly tax
• Windscreen repair or replacement
• Three drivers - you can change these whenever you like
• Full RAC breakdown assistance