People claiming Personal Independence Payment (PIP) and Disability Living Allowance (DLA) from the Department for Work and Pensions (DWP) are set to lose a £750 cash benefit this month. The one-off payment, known as the New Vehicle Payment, which assisted veterans and those with disabilities in purchasing a brand new car on the Motability Scheme, will no longer be available.
Initially introduced to help claimants cope with the rising costs of new cars, the scheme was paid as a lump sum towards an advance payment on a new vehicle, according to The Express. Mobility vehicles are accessible to people on the higher rate mobility components of PIP and DLA, or Adult Disability Payment (ADP) and Child Disability Payment (CDP) for those living in Scotland.
Those receiving the veterans’ benefits Armed Forces Independence Payment and War Pensioners’ Mobility Supplement also qualify. Under the Motability Scheme, if the chosen car had an advance payment, officials would send £750 to your dealer to contribute towards this cost.
If the advance was more than £750 then you’d have to cover the difference. If it was less than £750, then you’d receive the rest of the cash after getting your new car to spend as you wish.
The New Vehicle Payment was due to end on December 31, 2024 for new customers, but the deadline was extended until January 3, 2025 to allow claimants the opportunity to order if car dealerships were closed over Christmas. This deadline has now passed, reports Lancs Live.
Motability says PIP and DLA claimants who plan to order a new vehicle will not receive the previously given £750 cash assistance. This grant was designated solely for covering part of your car’s upfront payment but not for any adaptations or optional add-ons you might choose.
The organisation advised: “Anyone who orders their first car or Wheelchair Accessible Vehicle (WAV) by 3 January 2025 will qualify for the £750 New Vehicle Payment.”
They added: “If you order your first vehicle from 4 January 2025, you will not be eligible for this payment. You do not have to collect your vehicle by 3 January 2025, but you must have completed your order with your dealer by this date. You’ll only get this payment once, not every time you get a new vehicle.”