Personal Independence Payment Explained

As the Department for Work and Pensions (DWP) are currently making reforms to the welfare system, we thought it would be useful to write a short guide to help you understand how it could affect you.

One key aspect of the reform is to gradually replace the Disability Living Allowance (DLA) with the Personal Independence Payment (PIP) for disabled people aged between 16 and 64.  

In the future, to qualify for a Motability car you will need to receive the enhanced rate of the Motability component of the PIP, just as you would have had to under the old DLA scheme.

Who Will Need To Apply For PIP?

If you are aged between 16 and 64 you will be invited to apply for PIP even if you have been awarded an ‘indefinite’ or ‘lifetime’ DLA.

Children under the age of 16 will receive DLA as normal until the age of 16 when they will be asked to apply for PIP.

Motability PIP payments

Who Will Not Be Affected?

  • Anyone who had their 65th birthday on or before the 8th April 2013 will continue to receive the DLA.
  • People who receive the War Pensioners' Mobility Supplement or Armed Forces Independence Payment.

The Process Of Applying For PIP

  • If you need to apply for PIP you will be invited to do so by the DWP between October 2013 and 2018.
  • You will be invited to apply when your fixed term DLA is due to expire, if you report a change of circumstance or when children reach the age of 16.
  • When you receive the invite to apply for PIP it is important that you do so within 4 weeks. If you do not make a claim the DWP will suspend and then stop your DLA payments completely.

The Switch From DLA To PIP

The Motability Scheme will work with PIP in the same way as it currently does with DLA. Motability will continue to lease cars to disabled people who receive either:

  • The Higher Rate Mobility Component of DLA
  • The Enhanced Rate of the Mobility Component of PIP
  • The War Pensioners’ Mobility Supplement
  • The Armed Forces Independence Payment.

If you are an existing DLA recipient who is awarded the Enhanced Rate of the Mobility Component of PIP, then your Motability lease will continue as you move from DLA to PIP.

More Information About The PIP

The DWP will regularly publish updates in Lifestyle magazine and online.

You can also find out more information on the government website. To check if PIP will affect you, to find out when your DLA may be affected and to check if you can make a new claim try the Governments new PIP Checker.

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