Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of waiving the surcharge for paying road tax on a monthly basis for people in receipt of welfare benefits.
Individuals in receipt of the higher rate mobility component of Disability Living Allowance (DLA) and its successor, Personal Independence Payment (PIP) qualify for an exemption from Vehicle Excise Duty (VED). A fifty per cent reduction in VED is available to those in receipt of the PIP standard rate mobility component.
Individuals who do not qualify for an exemption or the reduced rate pay VED in line with other motorists. To limit the impact on the public finances, a five per cent surcharge applies to monthly and six monthly direct debit payments.