The Motability scheme is changing from July 1, 2026, with the mileage allowance being cut from 20,000 to 10,000 miles before incurring a 25p charge on every additional mile driven
A significant shift could be on the horizon for Motability users concerned about mileage limits being cut under forthcoming changes to the scheme. From July 1, 2026, new contracts for those leasing vehicles will permit just 10,000 miles annually before incurring a 25p charge on every additional mile driven.
Previously, users enjoyed a 20,000-mile allowance with excess charges of just 5p per mile – prompting worries about the impact on disabled drivers and escalating scheme costs.
MPs have voiced concerns that the alteration will hit those who need to cover lengthy distances for essential reasons, including medical appointments or employment.
Now, in a fresh development, the Department for Work and Pensions has revealed that Motability is considering a change – with an announcement expected before the July 1 implementation date.
In a recent parliamentary question, Liberal Democrat Will Forster asked Secretary of State for Work and Pensions Pat McFadden: “On Motability, in what circumstances the reduction in mileage allowance from 20,000 miles to 10,000 miles a year can be mitigated.”
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Yesterday, Sir Stephen Timms, Minister of State for Social Security and Disability, responded: “Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors. This includes how they will determine what circumstances the reduction in mileage allowance can be mitigated.
“Motability have indicated that they will be introducing an exceptions process for very limited situations and will share an update before 1 July.”
Independent MP James McMurdock questioned Mr McFadden on: “What estimate he has made of the proportion of Mobility Scheme users who exceeded 10,000 miles per year in the most recent year for which data is available.” Sir Stephen responded: “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.” Labour’s Samantha Niblett previously asked Mr McFadden: “To ask the Secretary of State for Work and Pensions, what assessment he has 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.”
As part of the new measures, telematics technology will be installed in all vehicles used by new drivers and anyone with a person under 30 on the lease. Drivers will be required to fit black boxes to their cars and download an app on the phone of every person who drives the vehicle.
The technology will track driving behaviour, including speed and braking patterns, producing a weekly rating of green, amber or red. Should a driver receive a red rating, both the customer and the relevant driver will be given feedback. If the driver persists in dangerous driving, despite the warnings, for two consecutive weeks or four times over a 12-month period, they risk being removed from the Scheme.
Motability states that its average drivers clock up 7,500 miles each year. Motability Operations revealed that Drive Smart was launched in response to a rise in insurance claims and “focuses on how someone actually drives, rather than relying on indirect measures of risk like postcodes”, adding that it had been designed to “support and reward safer driving”.
She said early data suggested that customers using Drive Smart were having 18 per cent fewer accidents. She said: “We’re listening closely to what our customers are telling us as we continue to review and refine how Drive Smart works.
“In particular, we know usage is one of the biggest areas of feedback. We are actively reviewing how it is reflected in scores to help reduce some of the concerns customers are feeling.
“High usage will not impact a lease, because we know how important the scheme is for supporting customers with freedom and independence. We also recognise that many of our customers have different driving needs, including those who use adaptations, and we are developing the model to better reflect this.”
Meanwhile, a parliamentary petition calling on Motability to abandon its changes and criticising the government’s new taxes, has secured more than 46,803 signatures in three months – it needs to reach 100,000 names by 15 July to be considered for a debate in parliament.
To view and sign up to the petition click here.
