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.
It was initially introduced to help claimants cope with the rising costs of new cars. The now scrapped 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 residing 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, and PIP and DLA claimants who are considering ordering a new car have been hit with a blow as they will no longer be eligible for the £750 cash incentive. The grant, which was previously available to help with the advance payment on a vehicle, cannot be used for adaptations or optional extras, reports Lancs Live.
