The Department for Work and Pensions (DWP) has confirmed that eligibility criteria for the mobility component of Personal Independence Payment (PIP) will be reviewed in the coming months. This review forms part of a broader welfare reform initiative aimed at ensuring disability support remains fair and aligned with current needs.
Led by Sir Stephen Timms, Minister for Social Security and Disability, the review will involve co-production with disability charities and advocacy groups. Findings are expected later this year, with no immediate changes planned until the process is completed.
Potential Impact on Motability Users and Blue Badge Holders
At the centre of the review is the enhanced rate of the PIP mobility component, which currently allows claimants to lease cars or other adapted vehicles through the Motability Scheme. According to figures from Motability Operations, there are 815,000 customers using the service across the UK. If eligibility criteria are amended, these individuals could be directly affected.
Those who receive the enhanced mobility rate, currently set at £77.05 per week, can allocate part or all of this amount to lease a vehicle, powered wheelchair or scooter. The standard rate stands at £29.20 per week, and both levels serve as access points to additional support, including Blue Badge permits, Council Tax reductions, and disability premiums.
Speaking in Parliament, Sir Stephen Timms stated: “We have made it clear that we will co-produce our review of the PIP assessment with disabled people and representatives of disability organisations.” He further confirmed that the mobility element and all benefits linked to it are “in scope” of the ongoing review. According to the Department for Work and Pensions, more than 3.2 million Blue Badges are in use across the UK, underscoring the scale of potential impact.
Policy Developments and Future Reform of Disability Schemes
The review comes in parallel with a series of proposed policy changes unveiled during the Autumn Budget. Chancellor Rachel Reeves announced that the government plans to scrap VAT relief on voluntary top-up payments used to lease higher-end vehicles through the Motability Scheme. In addition, Insurance Premium Tax will be applied to vehicle leases under the scheme for the first time.
While these tax adjustments are not expected to affect existing vehicle leases or heavily modified cars for wheelchair users, the changes highlight a broader shift in the government’s approach to disability-related financial support. The Motability Scheme, which has long operated without additional costs to recipients beyond their disability benefits, may now see certain lease options become less accessible.
Rachel Maskell, an Independent MP and former member of the Labour Party, raised questions in Parliament about how the Treasury is collaborating with the DWP on the future of mobility allowances. Sir Stephen Timms responded that the government would not alter eligibility criteria until the review concludes, reiterating that the goal is to ensure the system is “fair and fit for the future.”
According to data from the DWP, more than 3.9 million people were receiving PIP as of late October, with over 1.9 million on the enhanced mobility rate. While the outcome of the review is still uncertain, the scale of those affected suggests that any changes will be closely scrutinised by disability groups and claimants alike. For now, individuals using the Motability Scheme, claiming PIP mobility support, or holding a Blue Badge remain unaffected, though the situation may evolve once the findings of the Timms Review are released later this year.
