McCREEVY ANNOUNCES CHANGES TO MOBILITY ALLOWANCE.

The Minister for Finance confirmed today that the refocusing of the Health Board’s monthly Mobility Allowance will not have any adverse effect on people who are also benefiting from the Disabled Drivers' and Disabled Passengers' (Tax Concessions) Scheme.

The tax forgone under the Disabled Drivers and Passengers Scheme is estimated at £22 million in 2000, when some 3,300 people benefited from the exemption, subject to certain conditions, for Vehicle Registration Tax and VAT on the purchase of new cars, and a total of 7,000 received a refund of excise on up to 600 gallons of fuel each year. The scheme also exempts the vehicles from annual road tax.

It had previously been announced that the Mobility Allowance would be doubled to £90 per month from 1 April next, but that it would be targeted specifically at those who did not have access to transport which is already heavily subsidised by the State through the Tax scheme. The Minister, acting on concerns expressed to him about the impact that the withdrawal of the Mobility Allowance could have on some of the affected individuals, has now decided that while the increased rate of £90 per month will, as intended, be given only to people who are not also in receipt of the tax subsidies, those benefiting from the Tax scheme will be able to retain the Mobility Allowance at its existing rate of £45 per month.

ENDS