Welfare Reform and Work Act 2016

22 Expenses of paying sums in respect of vehicle hire etc

In the Social Security Administration Act 1992, after section 15A insert—

“Expenses in respect of vehicle hire etc.

15B Expenses of paying sums in respect of vehicle hire etc.

(1) This section applies where—

(a) a relevant benefit component is payable in respect of a person (“the beneficiary”),

(b) an agreement has been entered into by or on behalf of the beneficiary with a relevant provider for the lease or hire purchase of a motor vehicle, and

(c) by virtue of regulations under section 5(1), the Secretary of State pays all or part of the relevant benefit component to the relevant provider for the purpose of discharging, in whole or in part, an obligation of the beneficiary under the agreement.

(2) Regulations may make provision—

(a) for the expenses of the Secretary of State in administering the making of payments to relevant providers to be defrayed, in whole or in part, at the expense of relevant providers, whether by requiring them to pay prescribed fees or by deducting and retaining a prescribed part of the payments that would otherwise be made to them or by such other method as may be prescribed;

(b) for the recovery from a relevant provider of any fees or other sums due from that provider under paragraph (a).

(3) In this section—

• “relevant benefit component” means—

  (a)

  the mobility component of disability living allowance, if it is payable at the higher rate (see section 73(11)(a) of the Contributions and Benefits Act), or

  (b)

  the mobility component of personal independence payment, if it is payable at the enhanced rate (see section 79(2) of the Welfare Reform Act 2012);

• “relevant provider” means a person whose business consists of or includes the supply by way of lease or hire purchase of motor vehicles to persons in respect of whom a relevant benefit component is payable.”