The Department for Work and Pensions (DWP) has provided further details on the rules governing the Motability Scheme and how certain benefits may contribute towards it. Sir Stephen Timms, a work and pensions minister, clarified the situation in response to a query about potentially expanding the scheme to include those receiving Attendance Allowance.
At present, individuals can lease a vehicle through the programme if they receive a qualifying mobility allowance that indicates they have difficulty with movement. For example, people on the higher rate of the mobility component of Personal Independence Payments (PIP) could be eligible.
To be considered for the scheme, claimants need to have at least 12 months remaining on their relevant benefit. While Attendance Allowance serves a similar purpose to PIP in assisting those with disabilities or health issues, it does not include a mobility component.
To qualify for this allowance, applicants must have reached state pension age and require assistance from someone due to their health condition. The benefit awards a lower weekly rate of £72.65 or a higher rate of £108.55, which totals up to a maximum of £434.20 every four weeks.
Mr Timms discussed the reasons behind the exclusion of Attendance Allowance recipients from the Motability Scheme, explaining: “It has never included a mobility component, and so cannot be used in payment for a leased Motability Scheme vehicle. Government mobility support is focused on people who are disabled earlier in life; developing mobility needs in older life is a normal consequence of ageing, which non-disabled younger people have had opportunity to plan and save for.”
He acknowledged that claimants could use their allowance towards mobility costs, stating: “There is no constraint on what an award of Attendance Allowance can be spent on. A recipient may choose to use this benefit to fund mobility aids. There are no plans to review the scheme’s qualifying benefits.”
In related news, the Department for Work and Pensions (DWP) has attracted criticism recently over upcoming new powers that allow it to request bank account information from claimants amid fraud suspicions. A proposed bill making its way through Parliament is set to grant authorities the ability to require at least three months of banking records and to “recover money directly” from account holders who don’t reimburse owed amounts.
Clyde & Co, a prominent law firm, has raised alarms over the potential consequences of new governmental powers, suggesting they could inadvertently ensnare innocent people and possibly lead to diminished tax revenues by fostering a “shadow economy”. Damian Rourke, who is a partner in the fraud risk practice at Clyde & Co, shared his apprehensions: “This could spark concerns around privacy for many. Allowing government bodies such access to personal financial information could leave people feeling exposed and contribute to an erosion of public trust.”
He also highlighted the risk that vulnerable groups, particularly those receiving higher benefits payments like the elderly or disabled, might be disproportionately impacted. The specialists pointed out that these powers may be used to target claimants of Universal Credit, given the vast number of individuals who rely on this support.
Moreover, investigators could turn their attention to recipients of Jobseeker’s Allowance, Employment and Support Allowance, and Housing Benefit, as these areas have historically had greater irregularities.