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Motability scheme

Published Thursday, June 22, 2017

This paper explains what the Motability scheme is and how it operates, including changes to eligibility for the scheme as a result of PIP.

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Motability is a registered charity set up by Royal Charter in 1977.  The charity oversees the operation of Motability Operations, a private limited company which leases motor vehicles and wheelchairs to disabled people under a number of schemes. A wide range of vehicle is available through the Motability scheme and a benefit amount will not necessarily cover the whole cost of a vehicle.

Eligibility for the Motability scheme depends on the disabled person being in receipt of one of four “qualifying benefits”:

  • Higher rate mobility component of Disability Living Allowance (DLA);
  • Enhanced rate mobility component of Personal Independence Payment (PIP);
  • Armed Forces Independence Payment (AFIP); or
  • War Pensioners’ Mobility Supplement

The disabled person pays for their vehicle by allowing the DWP (or Veterans UK) to pay all or part of their benefit direct to Motability Operations for the duration of the lease agreement.

The introduction of PIP has caused some concern as to the numbers of people currently able to use the Motability scheme who might be excluded after reassessment. In April 2017 the Government announced changes to the transitional support payment for these individuals and an extension of the period they can keep their vehicle.

Information on other roads- and vehicle-related issues can be found on the roads briefings page of the Parliament website; information on issues affecting disabled people can be found on the sickness, disability and carers' benefits and disability discrimination pages.

Commons Briefing papers SN00473

Author: Louise Butcher

Topics: Roads, Sickness, disability and carers' benefits

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