What is Personal Independence Payment (PIP)?
Personal Independence Payment (PIP) is non-means tested benefit, not affected by earnings or savings. Applying for PIP can help with the extra costs of living with a long-term health condition or disability. You must be aged between 16 and State Pension age to apply.
Can I apply for PIP?
If you are aged between 16 and the State Pension age, you may be entitled to PIP if you have a daily living and/or mobility needs and require extra help because of an illness, disability or mental health condition. If you have reached State Pension age you will need to apply for Attendance Allowance rather than PIP, but this cannot be used to lease a vehicle through the Motability Scheme.
In Scotland, PIP is gradually being replaced with Adult Disability Payment. If you live in Scotland and do not currently receive PIP, you may instead be able to apply for Adult Disability Payment. If you apply for PIP, you will eventually be transferred to Adult Disability Payment by Social Security Scotland.
How much can I receive?
Following a successful PIP application, the DWP will decide about how much PIP you should receive and for how long. PIP consists of two components called daily living and mobility. Each is paid at either a standard or enhanced rate.
PIP rates (as of April 2022)
|Daily living – standard rate||£61.85|
|Daily living – enhanced rate||£92.40|
|Mobility – standard rate||£24.45|
|Mobility – enhanced rate||£64.50|
If you are in receipt of the Enhanced Rate of the Mobility Component of PIP (currently £64.50 per week) you are eligible to lease a vehicle on the Motability Scheme.
Personal Independence Payment (PIP) and the Scheme
The Motability Scheme works with PIP in the same way as it does with DLA. 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 will be able to lease a car, scooter, powered wheelchair or Wheelchair Accessible Vehicle through the Motability Scheme.
What is the difference between DLA and PIP?
As part of its welfare reform programme, the Government is replacing Disability Living Allowance (DLA) with Personal Independence Payment (PIP).
The Government began replacing DLA with PIP in April 2013 in Great Britain and on 20 June 2016 in Northern Ireland. The process is now complete in Northern Ireland, but in Great Britain the Department for Work and Pensions (DWP) are still writing to affected DLA recipients informing them that they will need to apply for PIP.
The DWP will continue to make payments until a decision on the PIP claim has been made. The most important thing you can do at this stage is ensure that the DWP has your correct contact details. You don't need to do anything else until the department writes to you, however, once they have contacted you, make sure you respond within their given timescales.
DLA to PIP reassessments
Existing recipients of the Higher Rate Mobility Component of DLA who are reassessed and awarded the Enhanced Mobility Component of PIP will continue to be eligible to lease a vehicle on the Scheme. Existing customers who have an unsuccessful DLA–PIP reassessment will no longer be able to lease a vehicle on the Scheme and we will be in touch to help you return the car and support you through this transition. You will have around eight weeks from when the allowance payments end to return the car. We will write to you giving you all the information you need, including details of our transition support package. You may also be eligible for a pro-rata refund of any Advance Payment you made.
You have just been awarded Enhanced Rate of the Mobility Component of PIP and have never had a vehicle on the Scheme.
You are a customer or considering joining the Scheme for the first time, currently receive DLA and are waiting for your PIP reassessment.
You are a customer, currently receive DLA and looking for information about what to do if you are unsuccessful with your PIP reassessment.