Attendance Allowance: Motor Vehicles
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing vehicle tax reductions for people in receipt of attendance allowance.
Answered by James Murray
Vehicle Excise Duty (VED) applies to vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.
For individuals who develop a disability after the 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. While the intention is for AA to cover the need for care or supervision an individual requires as a result of their disability, individuals may choose to use their AA to fund mobility aids.
However, AA does not have a specific mobility component, and therefore does not include an exemption from or reduction in VED. The government has no current plans to review or amend this longstanding policy.
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