Benefit for PIP and DLA Claimants Scrapped Starting January 2025: Here is the reason

The Department for Work and Pensions (DWP) has scrapped a £750 payment for people receiving Personal Independence Payment (PIP) and Disability Living Allowance (DLA).

This payment, called the New Vehicle Payment, was a one-time lump sum meant to help people with disabilities buy a new car through the Motability Scheme.

It was introduced to help with the rising costs of new cars and was used towards the advance payment required for a vehicle on the scheme.

Those receiving higher-rate mobility components of PIP, DLA, or similar benefits in Scotland, such as Adult Disability Payment (ADP) or Child Disability Payment (CDP), were eligible. Veterans receiving Armed Forces Independence Payment or War Pensioners’ Mobility Supplement also qualified.

Under the scheme, if your chosen car had an advance payment, Motability would contribute £750 towards it. If the advance payment was higher than £750, you’d pay the difference.

If it was less, you’d receive the leftover cash after getting your car. However, the money could only be used for the car’s advance payment and not for additional features or modifications.

The benefit was originally set to end on December 31, 2024, but the deadline was extended to January 3, 2025, to account for Christmas dealership closures. This deadline has now passed, and new claimants will no longer receive the £750 payment when ordering a car.

Motability confirmed: 
“Anyone who ordered their first car or Wheelchair Accessible Vehicle (WAV) by January 3, 2025, will still get the £750 payment. However, if you placed your first order from January 4, 2025, you won’t be eligible. The payment is only available once, not for every new vehicle you order.”