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Personal Independence Payment and the Motability Scheme

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If you are an existing Motability customer, the Government’s plans to replace the Disability Living Allowance (DLA) for all recipients aged 16 to 64 with a new benefit called Personal Independence Payment (PIP), from 8 April 2013, may affect your eligibility to join the Scheme.

PIP and the Motability Scheme

The Motability Scheme will work with PIP in the same way as it does with DLA. Motability will continue to lease cars, powered wheelchairs and scooters to disabled people who receive either:

  • The Higher Rate Mobility Component of DLA
  • The enhanced rate of the mobility component of PIP (from April 2013)
  • The War Pensioners’ Mobility Supplement

If you are an existing DLA recipient who is awarded the enhanced rate of the mobility component of PIP, you should not experience any disruption to your Motability lease as you move from benefit to the other.

If you are an existing DLA recipient who has not received the enhanced rate of the mobility component of PIP, you will not be eligible to use the Motability Scheme. If this happens:

  • The leasing agreement will end
  • Motability will arrange with you for the vehicle to be returned
  • Motability refunds any Advance Payment on a pro-rata basis e.g. if the agreement ended after one year of a three year lease, two-thirds of the Advance Payment would be refunded
  • Subject to terms and conditions, Motability may in some cases be able to offer the vehicle for sale to you.

Appealing the decision

Customers will be able to appeal to the DWP if they disagree with the decision. However, DWP will not continue to make DLA payments while an appeal is being processed and so Motability will not be able to leave the vehicle with you. If the appeal is successful, you will of course be eligible to re-join the Scheme.

Source: http://www.motability.co.uk/about-us/news-and-information/personal-independence-payment (link opens in a new window)

Further information on PIP:

UPDATE FAQs:

UPDATE Factsheet: The Welfare Reform Act & changes to the benefits system

Department for Work and Pensions: http://www.dwp.gov.uk/policy/disability/personal-independence-payment/ (link opens in a new window)

 

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