Autumn Statement

George Osborne DLA motability carsIn what has become a tool for Political point scoring and headline grabbing, the Autumn Statement is also the time when budgets are set for the coming year and the time when we are told what the taxes raised buy the Government will will be spent on.

Since 2010 the figure used to decide the increase in Pensions and Benefits is the September CPI (Consumer Price Index), an inflation calculation historically lower than the RPI, Retail Price Index that was previously used. The state pension will increase at 2.5% or the September CPI figure which ever is larger and George froze the increase to most Benefits at 1% for the next few years, maternity, disability and carers benefits are protected and rise with inflation.

The September 2011 CPI figure was 5.2% and benefits were increase by this figure for 2012/13. The September 2012 CPI figure was 2.2%, in 2013 it was 2.7 % and this year it is only 1.2% and in April 2015 we will see a 1.2% rise in DLA, PIP and Carers Allowance.

In short the State pension will rise by 2.5% (£2.85 a week for a single person)

DLA/PIP High Rate Mobility will rise by 1.2% (70p) from £56.75 to £57.45 (tbc)

As you are aware this is the figure that can be exchanged for a mobility car, sadly new car prices have not risen in line with the Governments inflation figure, they have risen by considerably more,  list prices of new cars have been described as ‘ballooning against a backdrop of increased personal leases’.

The Scheme is therefore under increased pressure, we are not saying that there will be a further cull of top end cars or that Advance Payments will suddenly increase out of hand in January, we are simply pointing out that with a small increase the Mobility benefit and increasing retail prices the Scheme will have work harder to keep the existing prices in place.