Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his office has made of the potential merits of extending eligibility for free vehicle tax to recipients of Attendance Allowance.

The Government is absolutely committed to supporting disabled people and is determined that support should be focused on people who need it most. The aim of existing Vehicle Excise Duty (VED) exemptions for recipients of some disability benefits 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 State Pension age.

For individuals who develop a disability after 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. Unlike Disability Living Allowance and Personal Independence Payment, AA does not have a mobility component and is intended to cover the need for care or supervision an individual requires as a result of their disability rather than specific mobility needs. Individuals can however choose to use their AA to fund mobility aids.

As with all taxes, VED remains under review and any changes are considered by the Chancellor as part of the tax policy making cycle and Budget process.