§ Mr. Warrenasked the Secretary of State for Social Services if, in view of the increase in car maintenance costs which have taken place since July 1978 when the war pensioners' vehicle scheme allowances were last increased, he will now increase the allowances; and if he will make a statement.
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§ Mr. RossiI am pleased to announce that the car maintenance allowance and the private car maintenance allowance will both be increased from 1 January 1983.
The car maintenance allowance is intended as a contribution towards the cost of maintaining a car loaned by the Department under the war pensioners' vehicle scheme. The rate of the allowance is related to the age of the car, and at present ranges from £60 to £160 a year. The new rate will range from £90 to £250 a year.
War pensioners who are eligible for the loan of a car may choose instead to receive a private car maintenance allowance as a contribution towards the cost of running their own vehicles. This allowance will be increased from £350 to £550 a year.
Both allowances are exempt from income tax, and recipients do not pay vehicle excise duty.
The car maintenance allowance is received by some 4,800 war pensioners in England. The private car maintenance allowance is received by some 1,250 war pensioners in England. The increase in the car maintenance allowance will also benefit some 1,700 people in England who are not war pensioners, but who still have vehicles provided by the Department under the former invalid vehicle scheme.
Arrangements have been made to pay similar increases to recipients in Wales, Scotland and Northern Ireland. Everyone concerned will be given details of the increase when they receive their first enhanced payment.