People with a Blue Badge urged to claim £195 saving this month

People with a Blue Badge are being urged to check if they qualify for a £195 Vehicle Tax exemption before a rule change takes effect next month.

Starting April 1, 2025, road tax for vehicles registered after April 2017 will increase by £5 to £195 a year. More importantly, electric vehicles (EVs) will lose their tax-free status, meaning EVs registered from April 2025 will pay £10 in the first year, then the full standard rate from the second year onward.

Who is Affected?

Matt Fieldhouse, a Car Expert at Mobility in Motion, has warned that Blue Badge holders driving EVs registered in the last eight years could be wrongly charged this tax if they don’t claim their exemption—potentially missing out on £195 in savings. He estimates this mistake could cost disabled drivers across the UK up to £250 million in total.

Who Qualifies for Vehicle Tax Exemption?

According to GOV.UK, you may be exempt from paying vehicle tax if you receive any of the following:

• Higher rate mobility component of Disability Living Allowance (DLA)
• Enhanced rate mobility component of Personal Independence Payment (PIP)
• Enhanced rate mobility component of Adult Disability Payment (ADP)
• Higher rate mobility component of Child Disability Payment (CDP)
• War Pensioners’ Mobility Supplement
• Armed Forces Independence Payment

Note: If you receive the standard rate mobility component of PIP or ADP, you may qualify for a 50% reduction in vehicle tax.

Important Conditions for Claiming Exemption:

1. Vehicle must be registered in your name or in your nominated driver’s name.
2. Vehicle must only be used for the disabled person’s needs (not personal use by the nominated driver).
3. You can only exempt one vehicle at a time.

How to Apply for Vehicle Tax Exemption:

• If claiming for the first time, you must apply in person at a Post Office that handles vehicle tax.
• To find your nearest branch, use the Post Office branch finder and select ‘vehicle tax’ from the menu.
• You can also call your local Post Office for help.