DWP review could affect Motability and Blue Badge claimants | Personal Finance | Finance

The Department for Work and Pensions (DWP) has revealed that the eligibility requirements for Personal Independence Payment’s (PIP) mobility component will come under examination alongside the daily living element as part of the Government’s wider welfare reform initiative. The review will be spearheaded by Sir Stephen Timms, Minister for Social Security and Disability, working alongside disability charities and advocacy organisations, with findings expected by autumn.

Those claiming PIP at the enhanced rate mobility level can choose to direct part or all of their award towards leasing a new car, wheelchair-accessible vehicle, scooter or powered wheelchair through the Motability Scheme, according to the Daily Record.

The DWP was recently called upon to “consider the benefits to which PIP is a gateway, such as Motability, disability premiums, Council Tax discounts and Blue Badges”. Speaking to MPs, Sir Stephen confirmed: “We have made it clear that we will co-produce our review of the PIP assessment with disabled people and representatives of disability organisations.”

He continued: “The review will cover the assessment for the mobility component, which leads on to the Motability scheme, and other entitlements to which PIP is a gateway.”

Latest figures from Motability Operations – the body running the life-changing Motability Scheme – show there are presently 815,000 customers across the country. Currently, over 3.2 million Blue Badge permits are in use throughout the UK. Figures from the Department for Work and Pensions show that slightly more than three million Personal Independence Payment recipients are receiving either the standard or enhanced rate of the mobility component.

This total includes 1,961,029 people getting the enhanced payment of £77.05 each week, plus 1,111,219 on the standard rate of £29.20 weekly. At present, more than 3.8 million people are claiming PIP across England and Wales.

During a parliamentary question to the DWP, Rachel Maskell, previously Labour and now an Independent MP, asked what steps are being taken alongside the Chancellor of the Exchequer to jointly formulate policy changes to PIP’s ‘mobility allowances’. In his written response, Minister for Social Security and Disability Sir Stephen Timms said: “The PIP mobility element is in scope of the Timms Review, which aims to ensure PIP is fair and fit for the future.”

He went on: “We will co-produce the Review with disabled people, and their organisations to ensure lived experience is at the heart of its work. We will provide an update shortly.”

Sir Stephen further stated: “We will not make changes to PIP eligibility, including for the mobility element, until the Review has concluded.”

In the Autumn Budget last November, Chancellor Rachel Reeves announced plans to overhaul the Motability Scheme. The proposed reforms include scrapping VAT relief on top-up payments – one-off voluntary contributions required to lease high-end vehicles through the Scheme – and introducing Insurance Premium Tax on vehicle leases.

Changes in tax will not significantly impact vehicles that have been heavily modified for wheelchair users, or existing leases, and Motability will continue to provide vehicles at no additional cost to the value of eligible disability benefits.

PIP in a nutshell

PIP can help people over 16 and under State Pension age with the extra financial pressures associated with more than 500 health problems or disabling conditions. These conditions could be physical, sensory, mental, intellectual, cognitive, or a combination thereof.

The latest figures from the DWP show that over 3.9 million people across the UK were receiving PIP at the end of October. A successful PIP claim is now worth between £29.20 and £187.45 per week to assist with the additional costs of daily living and mobility needs.

However, a PIP award may enable claimants to access means-tested benefits even if they have previously been told they are not eligible.

PIP entitlement can act as a key to other benefits, such as Carer’s Allowance and schemes like the Blue Badge. While many of these benefits and schemes have additional qualifying conditions, some, including the Blue Badge, offer alternative access routes that don’t rely on a specific PIP rate or component.

Benefits which could be accessed with a PIP award

Even if you may not qualify for all or any of these benefits, it’s worth checking to ensure you’re not missing out on extra support.

• Access to Work
• Blue Badge or the Accessible Vehicles and Equipment Scheme
• Carer’s Allowance / Carer Support Payment
• Carer’s Credit
• Christmas Bonus
• Council Tax Reduction
• Employment and Support Allowance – only if you get the PIP daily living component
• Housing Benefit
• Income Support‎
• Jobseeker’s Allowance
• Pension Credit – only if you get the PIP daily living component
• Universal Credit

Anyone who has already claimed PIP or has a general query about their award and what else they may be entitled to claim should call the Disability Service Centre. Full contact details including phone numbers can be found on the GOV.UK website..