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At last (after much cajoling), this morning Andrew Murrison, the Parliamentary Under Secretary of State & Minister for Defence People and Veterans has formally announced the annual rate of increase to War Pensions including WPMS (10.1%) and has tabled the relevant Statutory Instrument to enact it.
WPMS will rise from £72.00 to £79.25 per week from Monday 10th April 2023:
Full details and rates below:
https://questions-statements.parliament.uk/written-statements/detail/2023-02-22/hcws573
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Will be interesting what impact if any on deposits – usual annual increase is comparatively small in percentage terms and would presume have little impact on Q2.
Will be interesting what impact if any on deposits – usual annual increase is comparatively small in percentage terms and would presume have little impact on Q2.
Absolutely no effect where vehicles are ‘Total Allowance’ as the April increase was ‘priced in’ back at Q4 2022 (October 2022).
The only effect will be where vehicles are on fixed weekly payments. Currently there is the very odd situation where AP’s for WPMS can be higher than some DLA/PIP AP’s due to the fixed weekly payments having to be held at the current weekly WPMS rate of £72.00 despite the ‘priced in’ formula.
An example (just one of the many) is the Nissan Leaf Hatchback 110KW Acenta 39KWH 5DR AUTO [TECH PACK] which is AP of £199 for DLA/PIP/AFIP etc, but £331 AP plus fixed £72 payments for WPMS.
These situations were caused by the early ‘pricing in’, coupled with the projected large 10.1% increase due in April 2023.
As from April, with WPMS increased to £79.25 the AP’s in these cases should fall back and the ‘status quo’ pricing wise regained (basically pay less AP but the higher weekly payments).
But for vehicles on ‘Total Allowance’ it will be ‘business as usual’.
Your point on AP’s is exactly what I was positing.
Your point on AP’s is exactly what I was positing.
Sorry Jon, I maybe missed your point.
The April WPMS increase will only affect the AP’s on those vehicles with fixed weekly payments. Yet this is a bit of ‘smoke and mirrors’ anyway (currently higher AP but lower weekly payments – from April lower AP but higher weekly payments). So over the 3 year lease period it works out the same, as the increase has already been ‘priced in’ to Motability vehicles.
Any current ‘Total Allowance’ AP’s will not change (other than routine price changes connected with entering a new Motability quarter).
Dave
Helpful reply/information thanks – always helps to understand any impact – initial thought with most things is that everything is priced in.
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