New changes to the Motability Scheme, which Personal Independence Payment (PIP) claimants can qualify for, risk harming them from July 1. From July, VAT and a premium tax will apply to most new leases, along with higher mileage charges. The company running the scheme has said it is looking at bringing in exceptions.
Scheme Changes and Impact
The scheme, which applies to Department for Work and Pensions (DWP) claimants, is not run by the DWP but by Motability Operations. Under a shake-up, rules are being tightened with claimants told of new mileage limits and tyre replacement rules from the start of next month. However, claimants have warned Motability over the impending rule tweaks, saying they could cause harm.
Claimant's Story
Kay Millar, 29, from Frome, has been in a wheelchair since the age of 12. "We worked for years to make sure disabled people can access the world, this will force them into their homes," the teacher said. "I live an active life, I became disabled when I was younger and have made the best of it," Millar added. "I play basketball, I surf, I support vulnerable people that I have to drive to see."
"My specialists are based in Surrey and London, I drive about two to three times a week for treatment or therapy," Millar continued. "It's not possible for me to get a different car with my specifications. I'm a low-income person. I'm in a pickle." Ms Millar told the BBC she will be forced to stay at home if she cannot afford her car any more.
Motability Operations Response
A spokesperson for Motability Operations said the government announced new taxes for the scheme, which means prices will increase from July. "Changing the mileage allowance of future leases lowers insurance and maintenance costs and increases the vehicle's resale cost, which reduces the cost of a lease," the spokesperson explained. "We understand that, in some circumstances, people may need to drive more than the mileage allowance. We will be introducing an exceptions process for very limited situations."
