The UK Government has dismissed a call by Labour to extend eligibility for free vehicle tax to include people of State Pension age in receipt of Attendance Allowance. Labour MP Seema Malhotra asked the Chancellor of the Exchequer if any recent assessments had been made into the “potential merits” of doing so.
Unlike Personal Independence Payment (PIP), Adult Disability Payment (ADP), Child Disability Payment or Disability Living Allowance (DLA), Attendance Allowance does not have a mobility component. In its response to the query, The Treasury said that the benefit is intended to “cover the need for care or supervision an individual requires as a result of their disability rather than specific mobility needs”.
Treasury Minister, James Cartlidge MP, highlighted that older people claiming Attendance Allowance can, however, choose to use their benefit to “fund mobility aids”.
In a written response last week, Mr Cartlidge said: “The Government is absolutely committed to supporting disabled people and is determined that support should be focused on people who need it most.
“The aim of existing Vehicle Excise Duty (VED) exemptions for recipients of some disability benefits is to provide additional help for people who become disabled early, or relatively early, in life and as a result experience economic disadvantage.
“These allowances are therefore only available to people who become disabled before State Pension age.”
He continued: “For individuals who develop a disability after State Pension age, Attendance Allowance (AA) is a non-means-tested benefit which provides targeted help with the extra costs of disability and helps them maintain their independence.
“Unlike Disability Living Allowance and Personal Independence Payment, AA does not have a mobility component and is intended to cover the need for care or supervision an individual requires as a result of their disability rather than specific mobility needs. Individuals can however choose to use their AA to fund mobility aids.
“As with all taxes, VED remains under review and any changes are considered by the Chancellor as part of the tax policy making cycle and Budget process.”
Check if you are eligible for vehicle tax exemption
Eligibility
You can apply for exemption from paying vehicle tax if you get the:
- higher rate mobility component of Disability Living Allowance (DLA)
- enhanced rate mobility component of Personal Independence Payment (PIP)
- enhanced rate mobility component of Adult Disability Payment (ADP)
- higher rate mobility component of Child Disability Payment
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
The vehicle must be registered in the disabled person’s name or their nominated driver’s name.
Guidance on GOV.UK states: “It must only be used for the disabled person’s personal needs. It cannot be used by the nominated driver for their own personal use.”
How to claim
You claim the exemption when you apply for vehicle tax - find out more here.
Check if you can get a vehicle tax reduction
Eligibility
You can get a 50% reduction in vehicle tax if you get the:
- PIP standard rate mobility component
- ADP standard rate mobility component
The vehicle should be registered in the disabled person’s name or their nominated driver’s name.
You cannot get a reduction for getting the DLA lower rate mobility component.
How to claim
Full details on how to make a claim to DVLA can be found online here.
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