Types of Motability Car Allowances

To be eligible for the Motability Scheme you must be in receipt of one of the following, as well as have at least 12 months' award length remaining.

Personal Independence Payment (PIP)

Personal Independence Payment (PIP) is a welfare benefit, offered by the government for anyone between the ages of 16 and 64, to help with some of the extra costs if you have a long term physical or mental health condition or disability. 

There are two rates of PIP awarded by the government, Standard and Enhanced rate, the one you receive will depend on the assessment carried out by a health professional. You will need the Enhanced rate to lease a brand-new car through the Motability Scheme.​

Higher Rate Mobility Component of Disability Living Allowance (HRMC DLA)

This allowance is provided by the Department for Work and Pensions (DWP) and can be used to cover the cost of a Motability lease agreement. As of 14th April 2021, this allowance is £62.55 ​ per week.

Enhanced Rate of the Mobility Component of Personal Independence Payment (ERMC PIP)

As part of its welfare reform programme, the Government has started to replace Disability Living Allowance (DLA) with a new benefit called Personal Independence Payment (PIP) for disabled people aged between 16 and 64.

The Motability Scheme will work with PIP in the same way as is it does with DLA. As of 12th April 2021, this allowance is £62.55​ per week.

War Pensioners’ Mobility Supplement (WPMS)

This allowance is provided by Veterans UK and can be used to cover the cost of a Motability lease agreement. As of As of 14th April 2021, this allowance is £69.85​ per week.​

Armed Forces Independence Payment (AFIP)

Introduced as part of the Welfare Reform Act 2012, those who receive this allowance will be eligible to join the Motability Scheme. AAs of 14th April 2021, the mobility element of the allowance is £62.55 per week (this refers to the mobility element, which is the same rate as HRMC DLA and ERMC PIP).

If you are visiting the Car Search to compare and choose a Motability vehicle, please refer to the HRMC/PIP option when making your allowance choice on the relevant option.

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