People on PIP and DLA are facing an urgent deadline, as the one-off £750 payment will soon be discontinued. Claimants are being urged to act quickly, as they only have a few days left to secure the payment before it is no longer available. This financial support, which helps with the costs of obtaining a new vehicle under the Motability Scheme, will no longer be offered after the deadline, leaving many wondering how they will manage without it.
PIP and DLA Claimants to See One-Off £750 Payment Scrapped in Just Days
By Lydia Amazouz
Published on 12 December 2024 09:28
People claiming Personal Independence Payment (PIP) and Disability Living Allowance (DLA) are being warned that a key benefit, the £750 New Vehicle Payment, will be cut off starting in January 2025. Originally scheduled to end on December 31, 2024, the deadline has been extended by just a few days, allowing claimants until January 3, 2025, to take advantage of this support. This payment has helped many disability benefit recipients lease a new car under the Motability Scheme, and its upcoming cancellation has sparked concerns about accessibility for those who rely on it for their mobility.
The £750 New Vehicle Payment: A Lifeline for First-Time Motability Applicants
The £750 New Vehicle Payment is a one-off sum offered to individuals applying for their first car or wheelchair-accessible vehicle through the Motability Scheme. This payment was introduced to ease the financial burden of acquiring a brand-new car, particularly for those with disabilities who may face additional challenges in finding reliable transportation. For many claimants, this payment has been an essential part of making their vehicle choice more affordable, ensuring they have the mobility necessary to navigate daily life.
However, after January 3, 2025, the payment will no longer be available. The Motability Scheme has confirmed that this date will be the final opportunity for first-time applicants to benefit from the £750 payment, giving them a last chance to place their order before dealerships close for the festive season. Those who miss this deadline will be unable to access the payment, even if they complete their vehicle order later.
Who Is Eligible for the New Vehicle Payment?
To qualify for the New Vehicle Payment, individuals must be receiving certain mobility-related benefits, such as the higher-rate components of PIP or DLA. This also includes Scotland's Adult Disability Payment and Child Disability Payment, which mirror the eligibility requirements. Additionally, those receiving the Armed Forces Independence Payment or the War Pensioners' Mobility Supplement are also eligible for this benefit, provided they are applying for their first Motability vehicle.
This payment is exclusively available to first-time applicants for the Motability Scheme. Individuals who already lease a vehicle through the scheme are not impacted by the change, and they will continue to receive their vehicles as per the current terms of their agreements. For many disabled individuals, the Motability Scheme has provided a crucial solution to their mobility needs, offering cars, electric vehicles, wheelchair-accessible vehicles, scooters, and powered wheelchairs, along with any necessary adaptations to accommodate specific needs.
What Can the £750 Payment Be Used For?
The £750 New Vehicle Payment can help cover part of the advance payment for a new vehicle under the Motability Scheme. Depending on the specific model and the required vehicle adaptations, claimants may need to pay an additional amount if the advance payment exceeds £750. Conversely, if the advance payment is lower than £750, Motability will refund the remaining balance to the claimant after the vehicle is received, allowing them to use the funds for other needs. However, it’s important to note that the £750 cannot be used to cover the costs of vehicle adaptations or any optional extras.
This payment offers flexibility for those on disability benefits, ensuring that they are not forced to pay more than they can afford when selecting a vehicle. For many, this final chance to claim the payment before the deadline is crucial for securing a car that fits their mobility needs.
Key Dates to Remember
To qualify for the £750 New Vehicle Payment, eligible claimants must complete their order with the dealership by January 3, 2025. While vehicles can be collected after this date, Motability will not issue the £750 payment to any new applicants who place an order after this deadline. It’s a crucial final opportunity for those who need it.
For individuals on the Motability Scheme or planning to apply soon, ensuring their order is completed before the end of the year is essential to receiving this payment. After January 4, 2025, the payment will no longer be available, marking the end of this specific benefit for first-time Motability applicants.