The Department for Work and Pensions has faced an array of questions from MPs over the upcoming changes
The DWP is facing new pressures after MPs and voters raised renewed concerns about the consequences of impending changes to the widely-used Motability service. From 1 July 2026, when ordering a new vehicle through the Motability Scheme, the standard mileage allocation will be cut.
Motability enables people with specific conditions to obtain a car by allocating part of their benefits towards a lease payment. More than 890,000 people nationwide currently use it – but there is widespread worry about changes to the scheme.
Under the revised scheme rules, leases will feature an average annual mileage limit of 10,000 miles, with drivers charged 25p for every mile exceeding this threshold. This represents a big shift from the existing arrangement, which provided a 20,000-mile allowance with a 5p per mile charge for additional mileage. The DWP says approximately 25 per cent of Motability users use more than the 10,000 mile limit.
The 10,000 mile rule equates to a total allocation of 30,000 miles across a three-year lease. Officials confirm that Wheelchair Accessible Vehicles (WAVs) will receive a total allowance of 50,000 miles over five years.
People will be required to pay for any mileage exceeding their allowance when their lease concludes. Additional mileage will cost 25p per mile, inclusive of standard rate VAT.
The Department for Work and Pensions has faced numerous parliamentary questions on the matter, with concerns mounting over the potential impact. In addition, more than 34,000 have signed a petition demanding the government stop the planned changes, calling them ‘unfair’.
The new regulations were introduced in an effort to “manage rising costs, including tax changes from the UK Government”, according to the Motability Scheme. Yet the petition voices direct concerns about the reforms, saying: “Many disabled people earn considerably less than average and a cost increase could mean they struggle to get a car.”
A DWP minister has now had to issue a statement on the impending changes following concerns raised by three MPs. Concerns have been raised over the proposed transition, with the department facing a wave of questions from MPs in recent days regarding the potential consequences of the alterations.
Labour MP for South Derbyshire, Samantha Niblett, submitted a parliamentary question to the department, asking what assessment had been made of “the potential impact of mileage restrictions applied to Motability scheme vehicles on disabled people and families living in semi‐rural and rural areas, particularly those reliant on their vehicle to travel longer distances to work, education settings and schools, healthcare appointments and other essential services; and what steps his department is taking to ensure that such restrictions do not create geographic inequality for disabled people.”
Liberal Democrat MPs Will Forster for Woking and Ben Maguire for North Cornwall raised comparable concerns, with all three MPs receiving an identical response from a DWP minister. Sir Stephen Timms, Minister of State for the DWP, issued the following statement on Monday, 20 April: “Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors. 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.”
Analysis shows that the DWP has issued exactly the same statement five times since April 16 when asked by MPs about the possible impact of the changes. The DWP statement, alongside information from the Motability Scheme, does note that some assistance will be available ahead of the scheme’s changes in July.
The Motability Scheme says: “We understand that, in some circumstances, you may need to drive more than the mileage allowance included in your lease. We will be introducing an exceptions process for very limited situations and will share an update before 1 July.”
What has the Motability Scheme said about the mileage changes?
The Scheme states that customers travel approximately 7,500 miles per year on average, meaning, it says, that the majority will be unaffected by the upcoming alterations. They stress that for those already holding a lease, nothing will change immediately. Your mileage allowance remains the same on your current lease — the new rules only apply to fresh orders placed on or after 1 July 2026.
Their website states: “If you need to drive more than the allowance, you can pay for extra mileage. For orders placed on or after 1 July 2026, excess mileage will be charged at: 25p per mile including standard rate VAT or 21p per mile if your lease benefits from VAT concessions.”
This charge covers both the additional distance travelled and the insurance for those extra miles. The scheme’s website adds: “Mileage is one of the biggest factors in the cost of running the Scheme.
“When we know how many miles a vehicle will travel, we can plan costs more accurately.”
The scheme’s objectives are to:
- Keep the scheme affordable
- Make sure support is fair for all customers
- Protect the scheme for years to come
Who qualifies for the Motability Scheme?
You can apply to join the Motability Scheme if you’re in receipt of one of these disability allowances:
- Enhanced rate mobility part of Personal Independence Payment (PIP)
- Higher rate mobility part of Disability Living Allowance (DLA)
- Enhanced rate mobility part of Adult Disability Payment (Scotland)
- Higher rate mobility component of Child Disability Payment (Scotland)
- War Pensioners’ Mobility Supplement (WPMS)
- Armed Forces Independence Payment (AFIP)
You must have at least 12 months remaining on your allowance when applying to join the Scheme. You can verify your award length on your allowance award letter, or by contacting your allowance provider.
What has the DWP said about the petition?
The department said: “On 26 March 2026, Motability announced changes to the leasing package that will affect new leases taken out from 1 July 2026. For new leases, mileage will be 10,000 miles a year. This is consistent with standard mileage allowances for car leases, and three out of four current customers drive fewer than 10,000 miles a year.
“Motability recognises that some customers may need to drive more miles for a variety of reasons. They will be introducing an exceptions process for very limited situations and will share an update before 1 July.
“Standard leases will continue to include insurance, servicing, maintenance and breakdown cover, protecting the core package of support available to customers. In determining these changes, Motability have taken careful steps to ensure the Scheme remains good value and accessible for disabled people.
“This includes engaging with Scheme customers about prospective changes, the feedback from which has informed the changes.”
You can see the petition arguing for changes to Motability to be halted here.
