People claiming Personal Independence Payment (PIP) and Disability Living Allowance (DLA) from the Department for Work and Pensions (DWP) will lose a ￡750 benefit from January.

       A one-off payment of ￡750 was given to people with disabilities via Motability Operations to help them get a brand new car on the Motability Scheme, but the New Vehicle Payment has now been scrapped.

       It was introduced to help benefit claimants manage with the increasing price of new cars, due to global shortages after the Covid pandemic, and was paid as a lump sum towards an advance payment on a new vehicle.

       Mobility vehicles are available to people on the higher rate mobility components of DWP benefits PIP and DLA, or Adult Disability Payment (ADP) and Child Disability Payment (CDP) for those in Scotland. Those on the veterans' benefits Armed Forces Independence Payment and War Pensioners' Mobility Supplement also qualify.

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       Under the Motability Scheme, if the car you chose had an advance payment Mobility would send ￡750 to your dealer to put towards this cost. If the advance was more than ￡750 then you’d have to pay the difference, and if it was less than ￡750 then you’d be sent the rest of the cash after you got your new car to spend how you chose.

       The money could only be used towards the cost of your car’s advance payment, but couldn’t be used to pay for adaptions or optional extras.

       The New Vehicle Payment was due to end on December 31, 2024 for new customers, but the deadline was extended until January 3, 2025 to give claimants the chance to order if car dealerships were closed over Christmas.

       This deadline has now passed meaning PIP and DLA claimants who order a new car will no longer qualify for the ￡750 cash.

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       As such, anyone who orders thier first vehicle from January 4, 2025 won't be eligible for this payment. If you ordered your first vehicle by January 3, 2025, you will get the one-off payment.

       In a statement, Motability said: "It was always intended to be a one-off payment for each customer and the vast majority of our customers have already benefitted from this payment and used it towards their Advance Payment for their new vehicle.

       "If one of our current Scheme customers hasn't received their New Vehicle Payment yet, they will still receive this when they order their new car.

       "It's only new customers who are joining the Motability Scheme (from 4 January onwards) that will no longer receive this payment."