Monday, 25 July 2011

Motability and Personal Independence Payments (PIP)

Where does Motability stand on the reform of Disability Living Allowance (DLA) to Personal Independence Payments (PIP)? Motability has in excess of half-a-million customers, all of whom currently receive the Mobility component of DLA or the equivalent for ex-service personnel - Motability users usually have awards of a three-year duration or longer.

The government's proposals to cut 20% of claimants from the benefit has massive implications for Motability - if the migrations from DLA to PIP go the same way of Incapacity Benefit (IB) to Employment and Support Allowance (ESA) the figure could be greater than 20%.

A 20%+ loss of business would be damaging for both Motability and its remaining users. Doubtlessly, such losses would drive up the prices for users. The 'no advance payment' option may well be abandoned; with higher advance payments being charged.

As 'life' and 'indefinite awards' of benefit are being phased out, this suggests more frequent testing and reviewing of claimants. If people are tested on a yearly basis how will Motability deal with its leasing periods; would it be feasible to award one-year leases - I doubt it.

Potentially disabled people have a strong ally in Motability. Should we be reaching out to this organisation to join ranks with us against this government's draconian policy?

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