Here is an interesting update on the situation for those who no longer qualify for the mobility component high rate of Disability Living Allowance(DLA) when they are reassessed for Personal Independence Payment(PIP).
Lord Sterling, Chairman of the Board of Governors, of the Motability Scheme has stated-
‘DWP has already announced that they will allow DLA payments to continue for four weeks after they make their decision regarding PIP. In addition to this, the Scheme will allow customers to retain their vehicle for up to a further 3 weeks from the date the DLA payments end. The customer will therefore be able to retain their vehicle for close to two months after the DWP decision is made.
Customers will need to return the car to the dealership in good condition and within the agreed timeframe in order to qualify for the following transitional support:
For customers who entered into their first lease agreement with the Scheme before January 2013 and therefore could not have been aware of PIP and the associated risks when they joined (the vast majority of customers), we will provide transitional support of £2,000. For many customers, this will enable them to continue to have mobility by purchasing a used car.
For customers who entered into their first lease agreement with the Scheme with an awareness of PIP being introduced and of the risk that they could lose eligibility following a future PIP reassessment i.e. after January 2013 and up to December 2013, we will nonetheless provide transitional support of £1,000.’