The DWP has issued a warning about the Motability Scheme (Image: Getty)
The has explained the rules regarding the Motability Scheme and what funds can be used towards it.
Work and pensions minister, Sir Stephen Timms, provided an update after a question about if the Government had considered expanding the scheme to those on .
At present, you can lease a vehicle through the scheme if you are on a qualifying mobility allowance, meaning you have issues getting around.
For example, those on the higher rate of the mobility part of PIP (Personal Independence Payments) may qualify. You need to have at least 12 months left of your claim to qualify.
is similar to PIP in that it provides support for those who live with a disability or health condition, but it does not include a mobility component.
To get the allowance, you have to be of age and have a condition where you need someone else’s help. The benefit pays a lower rate of £72.65 a week or a higher rate of £108.55 a week, meaning you can get up to £434.20 each four-week pay period.
Mr Timms clarified why is not included in the Motability Scheme: “It has never included a mobility component, and so cannot be used in payment for a leased Motability Scheme vehicle.
“Government mobility support is focused on people who are disabled earlier in life; developing mobility needs in older life is a normal consequence of ageing, which non-disabled younger people have had opportunity to plan and save for.”
However, he said people on the benefit could use the money towards covering mobility costs. He explained: “There is no constraint on what an award of can be spent on
“A recipient may choose to use this benefit to fund mobility aids. There are no plans to review the scheme’s qualifying benefits.”
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The has recently been under scrutiny over that will allow it to request bank account information of claimants in cases of suspected fraud.
A bill going through Parliament will allow officials to request at least three months of a person’s bank statements, and to “recover money directly” from their account if they refuse to pay back what they owe.
Law firm Clyde & Co has raised concerns the new powers could target the wrong people and even undercut tax revenues, encouraging a “shadow economy”.
Damian Rourke, partner in the fraud risk practice with the group, said: “This could spark concerns around privacy for many. Allowing government bodies such access to personal financial information could leave people feeling exposed and contribute to an erosion of public trust.
“Certain groups in receipt of higher benefits payments, such as the elderly, disabled or other at-risk populations, could also be disproportionately affected by these measures, increasing the likelihood of errors and unjust outcomes.”
The experts believe the powers could be used to target people on Universal Credit, given that millions of people claim the benefit.
Investigators could also target people on Jobseeker’s Allowance, Employment and Support Allowance, and Housing Benefit, given these benefits have historically had higher levels of irregularities.