The Department for Work and Pensions has responded after Motability halved the annual mileage allowance with users facing a 25p charge on every mile beyond that
The Department for Work and Pensions has responded following Motability’s decision to dramatically reduce the mileage allowance for car users. The charity has cut the annual limit in half before drivers incur additional charges.
Drivers will now be permitted to cover 10,000 miles before facing a 25p charge on every mile travelled beyond that threshold. The previous allowance stood at 20,000 miles with a surcharge of 5p per mile.
In a fresh parliamentary intervention on the matter, Plaid Cymru MP Liz Saville Roberts questioned Secretary of State for Work and Pensions, Pat McFadden: “What assessment has he made of the impact of the reduction in mileage allowance under the Mobility scheme from 1 July 2026 on disabled people living in rural areas.”
Tory Andrew Snowden asked Mr McFadden: “What assessment he has made of the potential merits of exemptions and higher mileage allowances for Motability Scheme users with significant healthcare travel needs, including applying the previous average annual allowance of 12,000 miles per annum.”
Sir Stephen Timms, Minister of State for Social Security and Disability, revealed that approximately 25 per cent of Motability users would be negatively affected by the alteration. He stated: “Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors.
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“The changes to the leasing package were announced on 26 March and include reducing the mileage allowance from 20,000 per year to 10,000 per year. Changes only apply to new leases and there are no changes to the mileage allowance of existing leases. Motability Foundation have advised that approximately 75% of customers on the Scheme already use less miles than the proposed new mileage allowance. They have acknowledged that there will be an impact on some customers and are considering if the impact can be mitigated in some limited circumstances.”
The scheme has this week rolled out new technology for all fresh drivers and anyone with an individual under 30 named on the lease. Motorists must now install black boxes in their vehicles and download an application to the mobile phone of every driver.
Vehicles will be fitted with telematics systems that track driving habits, including velocity and braking conduct, producing a weekly rating of green, amber or red.
Motorists receiving four red ratings within a 12-month timeframe risk expulsion from the Motability programme. A pilot scheme in Northern Ireland last year resulted in vehicles being withdrawn from 300 individuals.
The scheme has now confirmed that if a driver receives a ‘red’ week alert, followed by the same rating for two consecutive weeks, they face having their vehicle removed. Motability guidance states: “Where a driver records a red week, both the customer and the relevant driver will receive feedback. If the driver continues to drive dangerously, despite the feedback, for two consecutive weeks, or four over the course of 12 months, then they may be removed from the Scheme.”
Motability has confirmed the system will record and transmit a driver’s exact location, direction and current speed; journey duration; braking and cornering; mobile phone usage, including phone model and ID and operating system, while driving; and device background location via network and GPS.
In a recent statement, Motability clarified that ‘high usage’ in a week can trigger a red alert but stressed there are ‘no limits’ on the number of journeys. It added that if high usage alone triggers a red score, ‘it will not impact the lease’.
It explained the Drive Smart scheme, which launched on 13 April, ‘will not impact a customer’s lease if they are driving safely regardless of how many journeys they take, how long they drive for or at what time they drive.’
It’s also important to note that Drive Smart is a wedge device that sits in the car windscreen paired with a phone app, not a black box location tracker. A spokesperson for Motability Operations, which administers the Motability Scheme, explained: “The Motability Scheme was created to keep disabled people mobile. Those using Drive Smart do not have limits placed on how many journeys they make, for how long they travel or at what time they drive. However, from industry data we know that these factors do contribute to the likelihood of an accident.
” While high usage can trigger a red week in a small number of cases, where it is the only reason for a red score, it will not impact the lease. Drive Smart does not penalise vehicle use but has been designed to use telemetry data to support and reward safer driving. We continue to listen to customer feedback about Drive Smart and are continually reviewing how it works to make sure it’s as effective as possible.”
Once the device arrives – compact enough to fit through a letterbox – users receive an email with instructions on how to register through a smartphone app. Motability has confirmed: “Just so you know, you’ve got 10 days to complete setup and start using the app.”
Alongside the black box technology, Motability has introduced guidance suggesting drivers take a break every hour and try to restrict themselves to six journeys per day. Exceeding this threshold will result in a red score for the driver, though it won’t affect their lease agreement. The charity has also reduced the annual mileage allowance by half before drivers incur additional charges. Drivers will now be permitted to clock up 10,000 miles before facing a 25p charge on every mile travelled beyond that threshold. The previous arrangement allowed for 20,000 miles with a 5p per mile excess fee.
Motability reports that its typical driver covers around 7,500 miles each year, while Scotland’s equivalent scheme was continuing to assess the mileage cap. A red week is activated by consistently reckless driving behaviour – such as severe speeding. An isolated incident, like emergency braking or a single red journey, won’t trigger a red week by itself.
