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DWP Protects Existing PIP and DLA Claimants from Motability Scheme Rule Changes Starting July 1

Tuesday, April 21, 2026 motability dwp pip dla mileage leases disability rural roadtax tax

The Department for Work and Pensions (DWP) has confirmed that existing Personal Independence Payment (PIP) and Disability Living Allowance (DLA) claimants will be protected from upcoming changes to the Motability Scheme, which take effect from July 1, 2026. These changes primarily impact new leases under the scheme. Starting on July 1, new leases under the Motability Scheme will be subject to Value Added Tax (VAT) and Insurance Premium Tax (IPT), leading to increased costs.