Regulation 44 Payment of disability living allowance on behalf of a beneficiaryF6

England, Wales and Scotland

(1)

Where, under arrangements made or negotiated by Motability, an agreement has been entered into by or on behalf of a beneficiary in respect of whom F1disability living allowance is payable by virtue of entitlement to the mobility component at the higher rate for the hire or hire-purchase of a vehicle, the Secretary of State may arrange that any disability living allowance by virtue of entitlement to the mobility component at the higher rate payable to the beneficiary shall be paid in whole or in part on behalf of the beneficiary in settlement of liability for payments due under that agreement.

(2)

Subject to regulations 45 and 46 an arrangement made by the Secretary of State under paragraph (1) shall terminate at the end of whichever is the relevant period specified in paragraph (3), in the case of hire, or paragraph (4), in the case of a hire-purchase agreement.

(3)

In the case of hire the relevant period shall be:–

(a)

where the vehicle is returned to the owner at or before the expiration of the F2... term of hire, the period of the ... term; or

(b)

where the vehicle is retained by or on behalf of the beneficiary with the owner's consent after the expiration of the ... term of hireF3, other than where sub-paragraph (d) applies, the period of the ... term; or

(c)

where the vehicle is retained by or on behalf of the beneficiary otherwise than with the owner's consent after the expiration of the ... term of hire or its earlier termination, whichever is the longer of the following periods

(i)

the period ending with the return of the vehicle to the owner; or

(ii)

the period of the ... term of hireF4; or

(d)

where the original term of hire is extended by an agreed variation of the agreement, the period of the extended term.

(4)

In the case of a hire-purchase agreement, the relevant period shall be:–

(a)

the period ending with the purchase of the vehicle; or

(b)

where the vehicle is returned to the owner or is repossessed by the owner under the terms of the agreement before the completion of the purchase, the original period of the agreement.

F5(5)

In this regulation “Motability” means the company, set up under that name as a charity and originally incorporated under the Companies Act 1985 M1 and subsequently incorporated by Royal Charter.