hi Khalid, because a standard lease on motability is calculated at £64.50 per week for 3 years the ap represents the shortfall needed to pay for the car. but because wpms is an older mobility allowance £72.00 per week paid to “older” veterans normally they would end up paying 7.50 more than other beneficiaries hence the ap for wpms is typically £1170.00 less for a standard 3 year lease. so if they extend beyond the 3 years that same differential is paid back to them as the computers either veterans agency or mb cant deal with adjusting the amount at source. so it has to be done manually in effect.
Hi Mitch,
Just a brief update, the differential between WPMS and DLA/PIP AP’s went up to £1253 from 1st October.
Dividing this down to a weekly amount (/52 ((weeks)), / ((3 years)) ), now gives the weekly differential between WPMS and the other allowances as £8.03.
In effect, Motability have already priced in an increase of roughly 7.1% (rounded to the nearest 1p).
They usually do this in the January quarter prior to the annual April rise in allowances/benefits, so they have rather jumped the gun this year and priced it as a circa 7.1% increase.
It will be interesting to see if they adjust this again once the government announce the actual percentage rise which should be based on September’s CPI rate.