Over 800,000 people in the UK are benefiting from the Motability Scheme, which provides affordable leasing options for vehicles and mobility aids to disability benefit recipients.
PIP Update for Motability Scheme: How to Claim a Little-Known £750 Benefit
By Arezki AMIRI
Published on 6 October 2024 13:55
The Motability Scheme, designed to support individuals receiving disability benefits, continues to grow in popularity, with over 800,000 customers now benefiting from the program across the UK. Recent data highlights the scheme's increasing reach, offering eligible individuals the opportunity to lease a vehicle or mobility aid.
Expanding Support for Disability Benefit Recipients
Under the Motability Scheme, individuals receiving Personal Independence Payment (PIP), Disability Living Allowance (DLA), and similar benefits can allocate part or all of their mobility allowance towards leasing a new car, wheelchair-accessible vehicle (WAV), scooter, or powered wheelchair. The package includes additional services like insurance, breakdown cover, servicing, maintenance, and repairs, offering a comprehensive solution for beneficiaries.
The scheme's latest price list, now available on the Motability website, offers over 950 vehicles, giving customers a wide range of options. While some vehicles are fully covered by the benefit payment, others may require an upfront advance payment ranging from £100 to £2,000.
Inflation and Industry Shifts Impacting Prices
Andrew Miller, CEO of Motability Operations, acknowledged the rising costs faced by drivers, largely due to inflation and energy price increases. He noted the pressures car manufacturers are experiencing as they strive to meet sales targets while transitioning to electric vehicles (EVs), which may result in more vehicles on the scheme requiring a higher advance payment.
Miller emphasized that despite these challenges, the scheme remains a cost-effective solution, being 45% cheaper on average compared to alternative options. “Our goal is to provide customers with standout value, especially during this period of unprecedented change in the car industry,” he stated.
New Financial Benefits for First-Time Customers
A lesser-known benefit for first-time users is the £750 New Vehicle Payment, available to those leasing a vehicle for the first time. This one-time offer can be used toward advance payments or received as a full payment once the vehicle is delivered. For those opting for scooters or powered wheelchairs, a £100 New Product Payment is available. However, beneficiaries cannot receive both payments.
The scheme has also adapted to the increasing availability of electric vehicles. The current price list includes 209 electric cars, with 42 models offering advance payments of less than £1,000. As the UK shifts towards EV adoption, more petrol and diesel models are being phased out, enhancing the scheme’s focus on sustainability.
Key Features of the Motability Lease
The Motability lease includes several benefits, providing peace of mind to customers. These include:
- 60,000 mileage allowance over three years (100,000 miles (ca. 160,934 km) for WAVs)
- Kwik Fit tyre replacements
- Servicing, maintenance, and repairs
- Full RAC breakdown assistance
- Insurance, annual tax, and windscreen repair
- The option to list three drivers, with flexibility to change them as needed
The Motability Scheme continues to evolve, offering more electric vehicle options, alongside a comprehensive package of support services that ensure affordability and ease for individuals receiving mobility-related benefits.