DWP reforms that could affect Blue Badge or Motability claimants

The Department for Work and Pensions (DWP) has recently announced that eligibility criteria for the mobility component of Personal Independence Payment (PIP) will undergo scrutiny alongside the daily living element as part of the UK Government's broader welfare reform programme. Sir Stephen Timms, Minister for Social Security and Disability, will lead the review in partnership with disability charities and advocacy groups, with completion anticipated this autumn.

Recipients of PIP who receive the enhanced rate mobility component have the option to allocate some or all of their payment towards leasing a new vehicle, wheelchair-accessible transport, scooter, or powered wheelchair via the Motability Scheme.

The DWP was recently urged to "consider the benefits to which PIP is a gateway, such as Motability, disability premiums, Council Tax discounts and Blue Badges". Addressing MPs, Sir Stephen stated: "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 added: "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." Recent statistics from Motability Operations - the organisation operating the transformative Motability Scheme - reveal there are currently 815,000 customers nationwide.

Meanwhile, more than 3.2 million Blue Badge permits are currently in circulation across the UK. Data from the Department for Work and Pensions reveals that just over three million Personal Independence Payment claimants are in receipt of either the standard or enhanced rate of the mobility component.

This figure comprises 1,961,029 people receiving the enhanced payment of £77.05 weekly, alongside 1,111,219 on the standard rate of £29.20 per week. Presently, more than 3.8 million people are claiming PIP throughout England and Wales.

During a parliamentary inquiry to the DWP, Rachel Maskell, formerly Labour and now serving as an Independent MP, questioned what measures are being implemented alongside the Chancellor of the Exchequer to collaboratively develop policy modifications to PIP's 'mobility allowances'. In his written reply, Minister for Social Security and Disability Sir Stephen Timms stated: "The PIP mobility element is in scope of the Timms Review, which aims to ensure PIP is fair and fit for the future."

He continued: "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 added: "We will not make changes to PIP eligibility, including for the mobility element, until the Review has concluded."

During November's Autumn Budget, Chancellor Rachel Reeves unveiled proposals to reform the Motability Scheme. The planned reforms encompass abolishing VAT relief on top-up payments - one-off voluntary contributions needed to lease premium vehicles through the Scheme - and implementing Insurance Premium Tax on vehicle leases.

Tax alterations will not significantly affect vehicles that have been extensively modified for wheelchair users, or existing leases, and Motability will persist in supplying vehicles at no extra cost to the value of eligible disability benefits.

PIP in a nutshell

PIP can assist individuals over 16 and under State Pension age with the additional financial burdens associated with more than 500 health issues or disabling conditions. These conditions could be physical, sensory, mental, intellectual, cognitive, or a combination thereof.

The most recent data from the DWP reveals 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 aid with the extra costs of daily living and mobility needs.

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

This is because entitlement to PIP can serve as a gateway or passport to other benefits, such as Carer's Allowance and schemes sponsored by other departments, like the Blue Badge. For many benefits and schemes, there are additional qualifying conditions, but for some, including the Blue Badge, there are alternative ways of accessing the benefit that do not depend on a specific rate or component of PIP.

Benefits which could be accessed with a PIP award

While you may not qualify for any or all of these benefits, it’s worthwhile checking to make sure you are not missing out on additional 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..