Motability Allowance
At the core of your Motability agreement is your lease, which offers you a comprehensive package that includes a brand-new car.
Your lease is funded by payments that come directly from your appropriate Motability allowance - here, we breakdown the different allowances available, and how they work.
Motability Allowance Types
In England and Wales, there are four core Motability allowance types (with a further two for Scotland) which are used to pay for your Motability lease.
Personal Independent Payment (PIP)
PIP helps with the extra costs of living with long-term health conditions or a disability.
It isn’t means tested, or affected by income or savings.
If you are looking to apply for PIP, you will need to be aged between 16 and State Pension age.
Additionally, you’ll have daily living or mobility needs due to illness, disability or a mental health condition.
If you’re a resident of Scotland, the alternative allowance is the Adult Disability Payment.
In terms of the payment itself, this is split into two parts: ‘daily living part’ and ‘mobility part’.
Each is paid at different rates - the part that’s important for the Motability Scheme is the Mobility Part Higher Rate, which is currently set at £71.00 per week.
Disability Living Allowance (DLA)
DLA payments are in place to help you with extra costs associated with a disability you have.
Like PIP, it isn’t means tested or affected by income/savings.
People who are aged between 16 and State Pension age were eligible for DLA.
However, DLA is being replaced by PIP for most adults, and if you have received an invitation for a PIP reassessment, then you’ll need to wait until your PIP is confirmed before ordering a car.
Today, you can only make a new claim for DLA if you are claiming for a child under 16.
DLA is split into two separate rates: Higher Rate & Lower Rate.
The Higher Rate will be used for your DLA Motability payment, and is currently set at £71.00 per week.
War Pensioners’ Mobility Supplement (WPMS)
WPMS is an allowance for those who require extra mobility costs associated with a disability caused by military service.
Veterans UK provide the payment, and those receiving it will be eligible for Motability.
You can test your eligibility for WPMS on the Veterans UK website.
However, you won’t be able to receive WPMS if you already receive: DLA, PIP or Armed Forces Independence Payment (AFIP)
WPMS only has one rate, which is used towards your Motability lease, and is currently at £79.25 per week.
Armed Forces Independence Payment (AFIP)
AFIP is an allowance for service personnel and veterans who have been seriously injured in service, with the payment covering any costs related to the individual’s injury.
You can be eligible for AFIP if you were injured on or after April 6 2005, and if you’re entitled to a Guaranteed Income Payment of 50% or higher through the Armed Forces Compensation Scheme.
There is no assessment required if you are eligible for AFIP, nor is it means tested by income or savings.
You will not be able to get AFIP if you are already receiving: DLA, PIP or WPMS payments.
The Higher Rate Mobility element of AFIP is currently £71.00 per week.
When searching for a vehicle, use PIP as a reference point for an allowance type.
Learn more about Motability Eligibility
How much is Motability allowance?
This will depend on which allowance you are eligible for:
- Personal Independence Payment (PIP) - £71.00 per week
- Disability Living Allowance (DLA) - £71.00 per week
- War Pensioners’ Mobility Supplement (WPMS) - £79.25
- Armed Forces Independence Payment (AFIP) - £71.00
When do Motability payments start?
Your payments will start as soon as you take delivery of your Motability car.
Everything is taken care of by the Scheme, with payments automatically being made straight from the respective allowance provider to Motability themselves.
What about an Advance Payment?
Any Advance Payment will need to be paid in full to the dealer, and this can be either before or on the day you take delivery of your car.