Motability - Personal Independence Payment
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PIP AllowanceWhat is Personal Independent Payment? PIP is an allowance that's gradually replacing the Disability Living Allowance. There are 2 parts to PIP: a daily living allowance and a mobility allowance. Then for each allowance there are 2 rates, a standard rate and an enhanced rate. You can lease a Motability car by using the enhanced rate.
Who’s affected by PIP? PIP will replace DLA for people with a disability aged 16-64. Children who have a disability will still receive DLA until they hit 16. If you’re awarded PIP before you are 65 it can continue after age 65. But you can't claim PIP if you're 65 or over.
When to make a claim for PIP? You don’t need to actively do anything, you’ll be contacted between now and 2018 to make this change.
However to make a new claim for PIP, Citizens' Advice has useful information about the process: How to claim
How long does a PIP award last? Your decision letter will tell you how long you’ll get PIP for. If you’re terminally ill the award is for 3 years. The DWP should write to you 14 weeks - around 3 months - before your award is due to end, reminding you to make a new claim.
It can take the DWP a long time to process a new claim so it’s a good idea to make your new claim before your old one ends. You can do this up to 6 months before your old one ends. This will also help prevent any break in your PIP payments while you wait for a decision on your new claim. This will then help when making your Motability application as you need 12 months remaining on your award.
How Often Would I Receive PIP Payments? You’ll receive your Personal Independent Payment every 4 weeks in arrears. Meaning at the end of every month you will receive your PIP payment into your nominated bank account. However, you can receive the payment weekly if you claim under the special rules for terminally ill people. If you have applied for PIP this way you’ll be able to receive your payment weekly.
For further details on terminally ill special rules claim visit this link.
Is PIP a State Benefit? No. PIP is has replaced the Disability Living Allowance (DLA) for new claimants, it’s in place to benefit adults under the age of 65, who are living with a disability or are terminally ill. If you're a climate that reaches 65, then you can carry on claiming as long as you meet the eligibility criteria.
Claimants that are over 65 on 8th April 2013 and are receiving DLA payments, these won’t be changed to the new PIP. You won’t need to go through reassessment, you’ll carry on receiving DLA for as long as you're eligible.
Is PIP Means Tested? No. PIP is there to help towards extra costs that occur from long term health issues, illness or disability. It’s based on how the condition affects a person, not on what condition the person has. This means it’s not a means-tested benefit and can be claimed if you are in or out of work, and it’s not subject to tax. So the full amount of your benefit received can be spent on helping yourself.