§ Mr. HinchliffeTo ask the Secretary of State for Transport how many applications were received annually for exemption from vehicle excise duty on the ground of disability, from 1988 to 1992 inclusive; and how many of these were(a) successful and (b) unsuccessful.
§ Mr. KeyThe Benefits Agency deals with applications for certificates of entitlement for exemption from vehicle excise duty (VED), because exemption is linked to certain Benefits Agency allowances, chiefly the higher rate of the mobility component of disability living allowance. In 1988, 320,000 people received exemption from VED on the grounds of disability, in 1989 350,000, in 1990 375,000, in 1991 420,000,and in 1992 465,000. No figures for unsuccessful applications for exemption certificates are available.
§ Mr. HinchliffeTo ask the Secretary of State for Transport what was the total cost of exemptions from vehicle excise duty in 1992.
§ Mr. KeyIn 1992, 465,000 people were issued with exempt vehicle excise duty (VED) discs on the grounds of disability. The value of those discs was £57 million. 425,000 other vehicles (such as emergency vehicles) were also exempt from VED in 1992. Had they been required to pay VED, the revenue raised would have been at least £47 million.
§ Mr. HinchliffeTo ask the Secretary of State for Transport what action he will take to compensate disabled persons, following the abolition of exemption from vehicle excise duty for persons with mobility problems.
§ Mr. KeyThere are no plans to introduce compensation. The Government introduced provisions to ensure that those disabled people benefiting from the exemption at the time of its repeal on 13 October 1993 (approximately 20,000) will continue to benefit from the exemption for as long as their disability remains. The repeal does not affect entitlement to exemption from vehicle excise duty granted under the war pensioners mobility supplement or the higher rate mobility component of DLA. Some 400,000 people currently benefit from exemption through this route.