Saturday, 19 July 2014

Afraid of losing car under PIP rules? MOTABILITY TRANSITION

One-off transitional support for customers who lose eligibility to remain on the Motability Scheme From

Their Chairman States :

One-off transitional support for customers who lose eligibility to remain on the Motability Scheme

Since 2010, Motability has maintained a close dialogue with DWP as they developed their plans for the introduction of PIP through a number of public consultations. Over the last two years, Motability has also consulted disability organisations including Disability Rights UK, Disabled Motoring UK and groups representing customers with specific impairments, as well as undertaking considerable research with our own customers, to discuss what help would be most useful for those customers who are no longer eligible to use the Scheme. We are very grateful to all of the organisations and individuals who have helped us in developing and prioritising proposals for how we support these customers.
In order to ensure that the Motability Scheme is sustainable for the long term to continue to help the disabled community for at least another 35 years, we have the responsibility to identify risks, long term as well as short term, especially in these uncertain times. Taking account of these considerations as well as of our customers’ needs, Motability and Motability Operations have concluded that the following support can be provided to customers leaving the Car Scheme as a result of a PIP reassessment:
  • DWP has already announced that they will allow DLA payments to continue for four weeks after they make their decision regarding PIP. In addition to this, the Scheme will allow customers to retain their vehicle for up to a further 3 weeks from the date the DLA payments end. The customer will therefore be able to retain their vehicle for close to two months after the DWP decision is made.
  • Customers will need to return the car to the dealership in good condition and within the agreed timeframe in order to qualify for the following transitional support:
  1. For customers who entered into their first lease agreement with the Scheme before January 2013 and therefore could not have been aware of PIP and the associated risks when they joined (the vast majority of customers), we will provide transitional support of £2,000. For many customers, this will enable them to continue to have mobility by purchasing a used car.  
  2. For customers who entered into their first lease agreement with the Scheme with an awareness of PIP being introduced and of the risk that they could lose eligibility following a future PIP reassessment i.e. after January 2013 and up to December 2013, we will nonetheless provide transitional support of £1,000.
We will review these levels of transitional support during 2015 to take account of economic conditions and of any possible changes the Government may be making to PIP at that time.
  • For customers who have made an Advance Payment (an additional upfront payment to lease a larger or more complex vehicle on the Scheme), the Scheme will continue to refund any Advance Payment on a pro-rata basis. No further costs will be applied to customers whose leases end early as a result of a PIP reassessment.
  • We will work with our Scheme suppliers, including RSA and RAC, to provide general information on motoring, insurance and other motoring services outside of the Scheme. This will include information, for example, on buying a new or used car, and arranging insurance and other services such as breakdown cover. In particular, we are working with a leading UK insurance broker who will offer insurance quotes to former Scheme customers that will recognise their no-claims history on the Scheme. We are also working with manufacturers and dealers to ensure that they are aware of the issues faced by these customers and are able to discuss possible alternatives to maintain their mobility once they have left the Scheme.
  • The Scheme will offer customers an opportunity to purchase their vehicle following the end of the lease. The payments that they would otherwise have received upon returning the vehicle can be directed towards the purchase price.
  • We will work with customers who have Wheelchair Accessible Vehicles on the Scheme on a case by case basis to understand and assist with their future mobility arrangements including, where appropriate, enabling them to retain their current vehicle.
  • For customers with adaptations, we will help them with the costs of fitting the same adaptations to a non-Scheme vehicle.
The Motability Scheme will also provide a package of support and advice to customers currently leasing a scooter or powered wheelchair, with the objective of allowing them to retain their current product wherever possible.
As the DWP plans to begin reassessments of existing DLA recipients in October 2013 and each reassessment will take several months to complete, we do not expect any Scheme customers to become eligible for this support until early 2014. We will monitor customers’ feedback on the support and advice we provide and we may make changes to it based on experience. We will also formally review all aspects of our support package in Autumn 2015, to take account of economic circumstances and any possible changes the Government may be making to PIP at that time.
In the years to come, the Motability Scheme will receive applications from recipients of PIP as well as from recipients of DLA and we will continue to meet the needs of disabled people, as we have done since 1977.

Lord Sterling
Chairman, Motability Board of Governors
September 2013

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