Personal Independence Payment

What is PIP? (Personal Independence Payment)

The UK Government is in the process of making numerous changes to the benefits system. From April 2013 a new allowance was introduced called ‘Personal Independence Payment’ (PIP) which will eventually replace the Disability Living Allowance (DLA) for all disabled people aged between 16 and 64 years.

The facts

The Enhanced Rate of the Motability Component of PIP will provide access to the Motability Scheme in the same way as the current Disability Living Allowance (DLA). Like DLA, PIP is not means-tested and will be the same amount as DLA. No one will be automatically entitled to this new allowance for specific conditions. The new PIP focuses on what someone can do rather than their condition.
PIP entitlement will be reviewed on a more regular basis. From 10th June 2013 onwards, anyone applying for the higher rate of the mobility allowance for the first time will be assessed for PIP.

Who will and will not be affected by PIP?

Those that WILL be affected by PIP are as follows:
  • Disabled people aged between 16 and 64 years including ‘indefinite’ and lifetime’ DLA awards.
  • Disabled children will continue to receive DLA until they reach the age of 16 and are then assessed for PIP.
Those that WILL NOT be affected by PIP are as follows:
  • Any existing DLA recipient who turned 65 on or before 8th April 2014. They will continue to receive DLA.
  • People receiving the War Pensioners’ Mobility Supplement or Armed Forces Independence Payment.

How Will PIP affect our customers?

Current DLA recipients (that meet the criteria below) will be contacted by the DWP from October 2013 onwards and invited to apply for PIP. These criteria are:
  • Fixed term DLA awards that are due to expire
  • Recipients reporting a change in their circumstances
  • Children turning 16 years of age
The majority of people receiving DLA will not be affected by the by PIP until 2015 and beyond during which period all remaining DLA recipients will be reassessed for PIP including those on lifetime or indefinite awards.

Where can you find out more?

Motability customers can keep up-to-date with the latest news on PIP and the DWP’s reassessment process in the Motability Lifestyle magazine.
Further information can also be found on the following websites.

If a customer is affected by PIP and needs to ask about the return of a Motability car or leaving the scheme, then call the Motability Customer Contact Centre on 0300 456 4566

Howard Garages (Weston) Ltd is an Appointed Representative of Automotive Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Howard Garages (Weston) Ltd to act as a credit broker, not as a lender, for the introduction to a limited number of finance providers and to act as an agent on behalf of the insurer for insurance distribution activities only.

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