Personal Independence Payment (PIP) and the Motability Scheme

The Government, as part of its welfare reform programme, has started the transition to replace the current Disability Living Allowance (DLA) with a new benefit called Personal Independence Payment (PIP) which is expected to be complete by 2019.

It is important that you are made aware of these changes and what support is available for you through this transition if you are currently receiving DLA.

PIP has different eligibility criteria to the DLA, meaning some claimants will not be granted PIP going forward and will therefore no longer be able to use the Motability Scheme to lease a vehicle.

What is PIP?

The Department for Work and Pensions (DWP) introduced PIP to help people aged between 16 and 64 that have a disability. Personal Independence Payment is not means-tested or taxable and is paid whether the claimant is currently in work or not.

To make a claim for PIP, you will need to go through an assessment process. If you are currently receiving DLA payments, you need to go through a re-assessment for PIP – please see below for more information.

Like the DLA, PIP has two components: a ‘daily living’ and a ‘mobility’ component, each of which has a different rate of payment: a ‘standard’ and an ‘enhanced’ rate.

To have access to the Motability Scheme you must be awarded with the ‘Enhanced Rate of the Mobility Component of PIP’.

What if I am currently receiving DLA?

PIP will replace DLA, even if you currently have an ‘indefinite’ or ‘lifetime’ DLA award. However, payments will remain in place for children until they reach the age of 16 and will continue to be available for those aged 65 and over on 8th April 2013 (on 20th June 2016 in Northern Ireland).

For all others, at this stage you don’t need to do anything; everyone that is currently receiving DLA will be contacted directly and taken through the re-assessment process by the DWP.

The DWP will explain what you need to do and take you through the steps for making a new PIP claim. The DWP will also continue to make your DLA payments until a decision on your PIP claim has been made.

In order for you to continue to have access to the Motability Scheme, you must qualify for the ‘Enhanced Rate of the Mobility Component of PIP’. If you are awarded this, you will continue as normal on the Motability Scheme.

What do I do if my PIP claim is unsuccessful?

Unfortunately, if your PIP claim is unsuccessful and you do not qualify for the ‘Enhanced Rate of the Mobility Component of PIP’, you will no longer be able to use the Motability Scheme to lease a vehicle.

We appreciate this will be a difficult time for you and your family, so there is no rush. You will have around six weeks from the DWP’s decision to return your car to your dealership. Motability will be in touch to help support you through the transition and write to you with all the information you need for returning the car. As soon as you return the car, your car payments will stop.

Your Motability Specialist will also be able to give you advice for owning or leasing a vehicle not through the Motability Scheme. They know everything about car finance agreements outside of the Motability Scheme and can take you through every step to get you back out on the road, at a price you can afford.

Can I challenge the DWP’s decision if I am unsuccessful?

Yes, you can. If you have been unsuccessful with your PIP claim you can challenge the DWP’s decision by asking them to reconsider and then by appealing to H.M. Courts and Tribunals Service.

However, whilst this decision is being made, the DWP will stop your DLA payments, meaning the Motability Scheme will not be able to lease a vehicle to you during this time.

If you have returned the car and later receive the decision that you have been awarded the ‘Enhanced Rate of the Mobility Component of PIP’, unfortunately, you will not be eligible to return to the Motability Scheme for six months.

What do I need to know about PIP?

  • PIP is replacing DLA, with the full transition complete by 2019.
  • Existing DLA claimants will be contacted directly by the DWP for their re-assessment, therefore please ensure your contact details are up to date.
  • Once the DWP has contacted you, make sure you respond within their given timescales

Next steps…

If you have been awarded with the ‘Enhanced Rate of the Mobility Component of PIP’ but are still confused by these changes, give us a call at your preferred JCT600 dealership to arrange an appointment where we can talk you through the next steps.

Our Motability Specialists across each of our dealerships will be on hand to answer any questions you may have and guide you through your Motability experience. Select your preferred brand on our Motability page for contact details.

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