The Department for Work and Pensions (DWP) is facing calls to evaluate a significant change that could grant older people with severe mobility issues access to the Motability Scheme through their Attendance Allowance.
What is the current situation?
Currently, Attendance Allowance does not include a mobility component, unlike other benefits such as Personal Independence Payment (PIP). This means that recipients of Attendance Allowance, which is designed for State Pension age individuals with long-term care needs, cannot use their benefit to lease a vehicle through the Motability Scheme.
In a written response to Labour MP Mohammad Yasin, who proposed the change, the DWP minister Sir Stephen Timms confirmed the current policy. He stated that qualifying benefits for the Motability Scheme are specifically those that include a mobility component, such as the enhanced rate of PIP or the higher rate of Disability Living Allowance.
The potential impact of a change
If a mobility element were added to Attendance Allowance, it could transform the lives of hundreds of thousands of older people. The Motability Scheme allows participants to lease a new car, wheelchair-accessible vehicle, scooter, or powered wheelchair. The scheme currently supports 815,000 people across the UK.
Sir Stephen Timms did note, however, that "There is no constraint on what an award of Attendance Allowance can be spent on, and a recipient may choose to use this benefit to fund mobility aids." This means that while the allowance itself cannot be paid directly to the Motability Scheme, individuals are free to use the cash for other mobility support.
Broader context and concerns
This debate emerges amid rumours that Chancellor Rachel Reeves is considering scrapping tax breaks for the Motability vehicle leasing scheme in the upcoming Autumn Budget on November 26.
It is crucial to understand that participants in the Motability Scheme do not receive a 'free car'. Most people leasing a vehicle through the scheme are required to make an additional upfront payment, which can range from £100 to £2,000.
The scheme's comprehensive package includes:
- Insurance, servicing, and maintenance
- Full RAC breakdown assistance
- Replacement tyres and windscreen repair
- A 60,000-mile allowance over three years
Scottish Social Justice Secretary Shirley-Anne Somerville has also called on the UK government to abandon any potential tax changes affecting the Motability scheme ahead of the budget.
