In the first five years of the program, the government will give money to people with high-paid job descriptions who were previously unemployed and under-employed. But, as the government and Treasury have repeatedly acknowledged, people on benefit who get jobs are more likely than the rest of the unemployed to have a regular income so they don’t need the government to help. When they are still in unemployment, many won’t get the help they do in the second five years.
Even a job and a salary does not guarantee they will be able to buy a car. If they have taken a job where their employer wants to see that they will stay on benefits for another year or two to get a job with a higher salary, they will find it hard to get an offer from someone on car-buyers-only schemes.
The job-buyback scheme will work best in cities and towns where there is lots of high-street stores and service providers. As the government notes, the government is seeking to be “fair and efficient in its provision of financial support” for those people who don’t currently have car insurance, which is why it is asking for feedback from other providers.
The government also wants to be “fair and efficient in its provision of direct financial support” for the car-buyer schemes. It is still open to suggestions on ways it might do better to ensure that it is not making financial help available just to those who might be eligible.
Why should I apply if I don’t already do so?
You can use feedback forms or contact the car-buyer schemes directly to ask questions. They are available online and by post to businesses in the area where you live or work.
Can my savings or pension be affected by car insurance, disability support allowances or disability allowance payments?
Car-buyers benefits do not mean disability allowance. Disability allowance is an annual payment for people who are deemed fit for work due to being able to work or doing certain tasks that are physically and mentally demanding. Personal independence payments (PIP) are the main assistance you get from the government to help pay for things like transport and food. Car-buyer benefits only cover purchases of new cars.
There could be an impact on your savings and pensions if you currently have some sort of disability which requires help with buying a car. We will be working with the government and other stakeholders to look at how to minimise the impact of this on the most vulnerable people.
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