£750 payment for people on PIP or other disability benefits accessing Motability Scheme for first-time

The Motability Scheme enables people on disability benefits to exchange all or part of their qualifying weekly mobility allowance (£75.75) for a brand-new car, Wheelchair Accessible Vehicle, scooter or powered wheelchair, so they can enjoy more freedom and independence. The latest figures from Motability show there are around 690,000 customers across the UK with an estimated 10 per cent of those - some 70,000 - living in Scotland.

The scheme is available to those on Armed Forces Independence Payment, War Pensioners' Mobility Supplement and people on the higher rate mobility part of Personal Independence Payment (PIP) or Disability Living Allowance (DLA). It is also available to people in Scotland on the higher rate mobility component of Child Disability Payment (CDP) or the enhanced rate mobility part of Adult Disability Payment (ADP).

However, many people who may have had higher rates of qualifying benefits for some time, or new claimants, may not be aware of a £750 payment available to those leasing a vehicle for the first time.

It's called the New Vehicle Payment for cars and Wheelchair Accessible Vehicles and is only available once per customer.

People can choose to send the money directly to the dealer to help towards an Advance Payment, or have it paid in full to themselves after they get their vehicle.

While leasing a vehicle through the Motability Scheme, or the Accessible Vehicles and Equipment Scheme, as it’s known for people in Scotland on devolved disability benefits, some vehicles require an advanced payment.

It’s important to note that both these schemes are operated by Motability Operations Ltd and follow the same eligibility guidelines.

It’s called a New Product Payment for scooters and powered wheelchairs, and it’s £100 instead - people get this after their new equipment has been delivered.

Motability advises that you cannot get both the New Vehicle Payment and the New Product Payment.

Motability recently updated its price list for April to June 2024 and is currently offering over 875 cars, including over 115 cars that require no advance payment, which means the £750 New Vehicle Payment would go directly to the claimant.

People can choose a lease that uses all of their mobility allowance - this is known as a variable lease.

The Motability website explains that you will not need an Advance Payment for the cars listed below, this means you will not need to pay anything upfront:

• Fiat 600, 115kW La Prima 54kWh 5dr Auto, with a driving range up to 252 miles

• Vauxhall Corsa, 1.2 Turbo 130 Ultimate 5dr Auto

• Volkswagen ID.3, 150kW Pro 58kWh 5dr Auto, with a driving range up to 266 miles

• Suzuki S-Cross, 1.4 Boosterjet 48V Hybrid Motion 5dr

• Dacia Duster, 1.0 TCe 90 Expression 5dr

There are some leases where you can choose to use just some of your allowance. This means you can spend the rest of your allowance as you want, including if it goes up in the future - this is known as a fixed or ‘constant’ lease.

The latest price list includes:

• From £60.50 a week: Kia Picanto, 1.0 GT-line 5dr Auto

• From £69 a week: Suzuki Ignis, 1.2 Dualjet 12V Hybrid SZ-T 5dr CVT

• From £71.00 a week: Toyota Aygo X, 1.0 VVT-i Edge 5dr

Full details on the latest updates to the price list can be found on the Motability website here.

Electric Vehicles

New guidance on the website states: “As manufacturers move their attention to electric vehicles (EVs), we’re able to bring more choice to the Scheme. Their change in focus means that some petrol and many diesel models are being phased out.

“We’re starting to see prices increase for those that continue to be available. But we’re still able to offer more than 115 cars with no Advance Payment, including popular models such as the Fiat 600 (down from £1,495) and Dacia Duster (down from £995).”

Some of the electric cars in the latest list include models with Advance Payments under £1,000.

What else is included in the lease?

You will get a brand-new vehicle, and a full package which includes:

• Insurance

• Servicing and maintenance

• Full RAC breakdown assistance

• Yearly tax

• Three drivers - you can change these whenever you like

• Kwik Fit replacement tyres

• Windscreen repair or replacement

• 60,000 mileage allowance over three years, or 100,000 for WAVWheelchair Accessible Vehicles

• Many adaptations at no extra cost

Full details on the Motability Scheme can be found on the website here.

Below is a quick guide on the Accessible Vehicles and Equipment Scheme and how to swap all or part of your mobility payment to lease a vehicle.

How the new scheme works

Social Security Scotland guidelines state: “When you lease a vehicle through the scheme, it will be with our authorised provider, Motability Operations Ltd.”

Social Security Scotland will help you pay the lease using all or part of either:

• the higher rate of the mobility component of Child Disability Payment - £75.75

• the enhanced rate of the mobility component of Adult Disability Payment - £75.75

Applying to lease a vehicle for yourself

You can apply to lease a vehicle yourself if you meet all of the following:

• You get the higher rate of the mobility component of Child Disability Payment or the enhanced rate of the mobility component of Adult Disability Payment

• You are 16 or over

• You are able to manage your own payments

Applying to lease a vehicle on someone’s behalf

Social Security Scotland also advises that you may be able to apply to lease a vehicle on behalf of someone else.

This might be an option if you're either:

• A parent or guardian of a child receiving the higher rate of the mobility component of Child Disability Payment

• An appointee for someone who is receiving the higher rate of the mobility component of Child Disability Payment or enhanced rate of the mobility component of Adult Disability Payment

How to apply

To apply to lease a vehicle using the scheme, go to the Motability website where you can:

• Choose a vehicle

• Find a dealership

When visiting a dealership, you need to present your certificate of entitlement. Social Security Scotland states that you will find this included in your decision award letter.

Find out more about Adult Disability Payment and leasing an accessible vehicle on the mygov.scot website here.

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