Need to know
The Department for Transport has updated Parliament on PIP vehicle tax exemption rules for enhanced and standard rate claimants
Parliamentary Under-Secretary Simon Lightwood has responded to a parliamentary question(Image: Parliament TV)
Need to know: goverment issues update to MPs on PIP tax rules
- The government has spoken about a two-tier system that leaves some people facing more bureaucratic hurdles to claim vehicle tax reductions.
- Officials are under scrutiny over the current process that PIP claimants must navigate with the DWP and DVLA. Those on enhanced rate mobility component get free vehicle tax and can renew online automatically.
- But people on standard rate PIP, who qualify for 50% reductions, face a laborious annual renewal process. They must complete V10 forms, visit Post Offices and provide DWP award letters each year.
- The issue emerged after Liberal Democrat MP Mike Martin questioned why disabled people must complete separate DVLA renewals when their eligibility is already reviewed by DWP.
- Parliamentary Under-Secretary Simon Lightwood admitted: “The DVLA will look to develop and introduce a full digital service for customers in receipt of the standard rate of PIP but this work will not start until after the delivery of electric Vehicle Excise Duty changes in 2028.”
- The Department for Transport has promised improvements but warned of a “sizeable wait” for any changes to occur.
- READ THE FULL STORY: DWP PIP two tier rules update for people who qualify for vehicle tax reductions
