To ask the Chancellor of the Exchequer, if she will make an estimate of the number of disabled people unable to claim an exemption on vehicle tax due to being over the age limit to access a benefit with a mobility component; and whether she has plans to reduce this gap.
Answered on
2 April 2025
The Government does not hold statistics on the number of disabled people who are not eligible for the Vehicle Excise Duty (VED) exemption due to being above the state pension age.
The aim of the VED exemption is to provide additional help for people who become disabled early, or relatively early, in life and as a result experience economic disadvantage. These allowances are therefore only available to people who become disabled before the age of 65 and who claim before their 65th birthday.
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. The AA does not have a mobility component, and therefore does not include an exemption from or reduction in VED. 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. The Government also provides Pension Credit for pensioners with low incomes and who, for whatever reason, have been unable to save for their retirement.