And from next April Motability will be getting an extra £325 a year from us all (assuming PIP goes up by 10%).
However, the benefit/allowance rises due next April already seem to have been ‘priced in’ by Motability from 1st October 22 (i.e. this current quarter).
How you can tell is by the differential pricing in the advance payments between PIP/AFIP/DLA etc and WPMS when for any vehicle both are ‘total allowance’.
Last quarter (and for the last year), the differential between PIP/DLA/AFIP and WPMS AP’s was circa £1130 when both are total allowance.
From 1st October 2022, the pricing shows a differential of circa £1253.
(There is always an odd variation of a couple of pounds or so for some models for some odd reason).
Hence the differential has widened by circa £123.
This is explained by the fact that as WPMS is paid at a higher weekly rate, when the same percentage increase is applied to all allowances used for the scheme, the WPMS rate increases by a larger amount. Hence the AP differential widens. This is what has just happened in ‘Motability-land’.
What Motability have done is already price in what they think next year’s rise will be (based on September’s CPI rate due to be published later this month) from 1st October 2022.
So, next April don’t expect just because allowances used for the scheme go up that vehicles will be cheaper!
It is also a little sneaky of them to price in next year’s increase this early!