Dáil Éireann Debate, Thursday - 14 May 2026
248. Deputy Shane Moynihan asked the Tánaiste and Minister for Finance the reason the relief caps under the Disabled Drivers and Disabled Passengers Scheme have not been index-linked; whether there are plans to introduce indexation to ensure the supports keep pace with rising vehicle and adaptation costs; and if he will make a statement on the matter. [36421/26]
Amharc ar fhreagraAs the Deputy is aware, the Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The reliefs from Value Added Tax and Vehicle Registration Tax are very generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. The DDS also has a a fourth category of relief of up to €48,000 for disabled drivers and up to €32,000 for disabled passengers, for in-vehicle wheelchair accessible adaptations.
The amount of the remission or repayment of VAT and VRT is decided on the basis of the value and nature of the adaptions made to the vehicle. Analysis of Revenue data provided to my department, on vehicle adaptions made under the DDS, indicates that the levels of relief provided far exceeds the costs of adaptations.
The Deputy should note, however, that my Department and I share concerns that the DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.
The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of new scheme developments by the Department of Transport.
As the Deputy will be aware, when this government took office, we committed to a step change in the delivery of supports and services for people with disability and their families.
Budget 2026 is the first step in delivering on this ambition, providing some €3.83 billion to specialist disability services next year, an unprecedented increase of €618 million, or almost 20%.
This funding will be vital in delivering the National Human Rights Strategy for Disabled People. The commitment to develop a new scheme by the Department of Transport, and in this context review the Disabled Drivers and Disabled Passengers Scheme, are strong commitments in this strategy.
