Motability Offers Scotland
Motability Offers Scotland


Personal Independence Payment



On this page you’ll find everything you need to know about Personal Independence Payment (PIP). If you have any further questions, contact our friendly, experienced team to ask away.

What is Personal Independence Payment?


PIP is a non-means tested benefit that can help with extra living costs if you are aged between 16-64, have a long-term physical or mental health condition or a disability, and have difficulty doing certain everyday tasks or getting around because of your condition.

The government is currently rolling out PIP to replace Disability Living Allowance (DLA). The process is now complete in Northern Ireland, but in Great Britain the Department for Work and Pensions is still writing to affected DLA recipients informing them that they will need to apply for PIP. DLA payments will continue to be made until a decision on the PIP claim has been made.

How much is Personal Independence Payment?


How much Personal Independence Payment you receive is decided on by the DWP. PIP is made up of two components called “daily living” and “mobility”. Each can be paid at either a PIP standard or PIP enhanced rate:

  • Daily living – standard rate: £60.00
  • Daily living - enhanced rate: £89.60
  • Mobility – standard rate: £23.70
  • Mobility – enhanced rate: £62.55

If you have a terminal illness you’ll get at least £89.15 a week, which will last for three years.

What is the eligibility criteria for PIP?

You need to be between 16 and State Pension age to be eligible for PIP. If you have reached State Pension age you will need to apply for Attendance Allowance instead of PIP, but this cannot be used to lease a vehicle through the Motability Scheme.

How to get a Motability car on PIP

If you are newly awarded the enhanced rate of the mobility component of PIP, and have at least 12 months remaining on your award, you are eligible to lease a vehicle (car, scooter, powered wheelchair or wheelchair accessible vehicle) on the Motability Scheme. You simply exchange all or part of your mobility allowance to lease a vehicle of your choice.

The Motability scheme includes:

  • Insurance for three named drivers
  • Servicing and maintenance
  • Annual car tax
  • Many adaptations at no extra cost
  • A new car of your choice every three years

PIP Frequently Asked Questions

Is PIP taxable?

PIP does not count as taxable income, so it has no effect on the amount of tax you pay. In this regard, PIP is the same as DLA, which is also tax-free income.

What if I have an unsuccessful DLA-PIP reassessment?

If you are not awarded the enhanced rate of the mobility component of PIP, you will no longer be eligible to lease a vehicle on the Motability Scheme and they will be in touch to help support you through this transition. You will have around 12 weeks from the DWP’s decision to return your car. Motability will write to you, giving you all of the information you need, including details of their transitional support package. You may also be eligible for a pro-rata refund of any Advance Payment you made.

 


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Calls may be monitored for quality and training purposes. Eastern Western Motor Group Ltd is authorised and regulated by the Financial Conduct Authority - we are a credit broker not a lender. Our Firm Reference is 310505. Registered Office: 8 Westerton Road, East Mains Industrial Estate, Broxburn West Lothian EH52 5AU Registered in Scotland No. 14833 VAT Registration No. 269233051 We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.

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