People claiming Personal Independence Payment (PIP) and Disability Living Allowance (DLA) from the Department for Work and Pensions (DWP) will lose a £750 benefit from next year.
The New Vehicle Payment is a one-off payment given to help people with disabilities get a brand new car on the Motability Scheme, but it is being scrapped from January.
The payment was introduced to help with the increasing price of new cars and is currently paid as a lump sum of £750 per customer to help towards the cost of an advance payment on a new vehicle.
It was due to end on December 31 this year for new customers, but the deadline has been extended until January 3, 2025 to give claimants a chance to order if car dealerships are closed over the Christmas period.
It means that PIP and DLA claimants must order a new car by January 3, 2025 to get the £750. Any orders made after this date won’t qualify for the cash.
In a statement, Motability warned: “Anyone who orders their first car or Wheelchair Accessible Vehicle (WAV) by 3 January 2025 will qualify for the £750 New Vehicle Payment.
“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.”
Mobility vehicles are available to people on the higher rate mobility components of PIP and DLA, or Adult Disability Payment (ADP) and Child Disability Payment (CDP) for those in Scotland.
Those on the veterans’ benefits Armed Forces Independence Payment and War Pensioners’ Mobility Supplement also qualify.
If the car you choose has an advance payment, Mobility will send the £750 to your dealer to put towards this cost. If the advance is more than £750 then you’ll have to pay the difference, and if it’s less than £750 then you’ll be sent the rest of the cash after you get your new car to spend how you choose.
Mobility adds that the New Vehicle Payment can only be used towards the cost of your car’s advance payment and cannot be used to pay for adaptions or optional extras.
If you don’t ask for the £750 to go directly to the car dealership, or you order a car without an advance payment, Mobility will send you the money within a few weeks of getting your new vehicle.
This will be sent by bank transfer if you saved your bank details in your Mobility Scheme online account. Otherwise it will be sent to you via a cheque.
If you’re ordering a scooter or powered wheelchair you’ll get a slightly lower payment of £100. This New Product Payment will also come to an end on January 3, 2025, so you’ll need to order by this date to qualify for the cash.
