The DWP says a £750 payment designed to help people on benefits will be scrapped in a matter of weeks, after Christmas.

DWP warns key benefit worth £750 will be scrapped in January

by · Birmingham Live

The Department for Work and Pensions has warned a key benefit worth £750 will be scrapped in January. The DWP says a £750 payment designed to help people on benefits will be scrapped in a matter of weeks, after Christmas.

Those claiming Personal Independent Payments and Disability Allowances will lose out on £750 from January 3, 2025. The DWP is preparing to scrap its New Vehicle Payments, one-off sums of £750 designed to help people on benefits get new cars.

The expiry date for the perk, which enables those eligible to get over £700 towards a new set of wheels through the Motability Scheme, was originally set at December 31 - with the DWP getting in the Christmas spirit by extending it into the New Year.

READ MORE People on DLA warned they will have to 'wait 10 months' for payment

The extension will allow those affected to nab the available payment before it’s too late and as car dealerships reopen after Christmas. A spokesperson for the scheme operator said: “[The extension] is to give you a final chance to order your first car if your dealer is closed over the festive period.

“Already have a new vehicle on the scheme? This end date does not affect you. If you’ve not already had the New Vehicle Payment, you’ll get it with your next car, even if that’s after January 3, 2025.” The payment, which goes towards an advance payment on a vehicle - and can only be used once by those eligible for it - will not be available to anyone who orders their vehicle from January 4.

You need to receive one of these qualifying mobility allowances, with at least 12 months left, to be eligible to join the Motability Scheme. It says: "Enjoy everyday freedom with a brand-new, reliable vehicle on the Motability Scheme. Simply exchange your qualifying mobility allowance for a brand-new car, Wheelchair Accessible Vehicle (WAV), scooter or powered wheelchair and our worry-free package. Remember, every lease comes with a full package, with everything you need to stay on the road."