New call for car tax discount for people over State Pension age on Attendance Allowance

Liberal Democrat MP Susan Murray has urged the UK Government to “review the criteria for vehicle tax exemptions” for disabled people over State Pension age receiving Attendance Allowance. The benefit does not include a mobility component like Personal Independence Payment (PIP), Adult Disability Payment (ADP) or Disability Living Allowance (DLA).

In a written response on Wednesday, Treasury Minister James Murray explained the UK Government is “committed to supporting disabled people” and is “determined that support should be focused on people who need it most”. He added the aim of existing Vehicle Excise Duty (VED) exemptions for those on 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”.

READ MORE: People over State Pension age with long-term health issues could get an extra £5,644 next year

READ MORE: Blue Badge update for people on PIP due to move to new disability payment by end of next year

Mr Murray continued: “These allowances are therefore only available to people who become disabled before State Pension age.

“For individuals who develop a disability after State Pension age, Attendance Allowance 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.”

However, things may change in the future as he added: “While we have no current plans to reform the VED exemptions for recipients of some disability benefits, the Government keeps all taxes under review as part of the policy making process, and the Chancellor makes decisions at fiscal events in the context of the public finances.”

Last month, Plaid Cymru MP Ann Davies asked the Department for Work and Pensions (DWP) if it has made an assessment of the “potential merits of extending eligibility of the mobility component of the Disability Living Allowance” to people over State Pension age.

However, in a similar response to the Treasury, Minister for Social Security and Disabilities, Sir Stephen Timms explained “developing mobility needs in older life is a normal consequence of ageing, which non-disabled younger people have had opportunity to plan and save for”.

In a written response, Sir Stephen continued: “Disability Living Allowance and government mobility support is focused on providing additional help with the extra costs of disability to people who are severely disabled early, or relatively early, in life and who as a result, have had fewer opportunities to work, earn and save.”

The DWP Minister added it is “normal for pensions and benefits systems to contain different provisions for people at different stages of their lives, because the help provided needs to reflect varying priorities and circumstances” and the DWP constantly reviews its policies “to ensure they meet the needs of our customers”.

Earlier this year, the DWP announced certain groups of older people on PIP with an award for the lower rate of mobility element may be able to ask the DWP to look again at their claim following a change in the law.

People over State Pension age may also be entitled to an increased award for the mobility part of PIP even if they have stopped getting the benefit - and be due backdated payments.

It’s important to be aware the change in law only relates to claimants over State Pension age and their entitlement to the enhanced mobility award. New DWP guidance explains it only applies to PIP claims that were reviewed between April 8, 2013 and November 20, 2020.

This change in law follows a tribunal ruling on May 22, 2020 which identified an unintentional gap in regulation 27 of the Social Security (Personal Independence Payment) Regulations 2013.

Changes to PIP regulations took effect from November 30, 2020 to correct this unintentional gap.

DWP has also launched a dedicated page on GOV.UK to help people check eligibility and ask for their PIP claim to be reviewed - if their mobility award could not increase because they had reached State Pension age.