New Motability users will face a reduction in replacements
The Motability Scheme is due to undergo a number of changes in July that will affect all new users and their vehicles. One update in particular is meant to better reflect what people need and how they have used their vehicles in the past.
The Motability Scheme allows people claiming mobility benefits to use this payment to lease a vehicle, such as new cars, wheelchair accessible vehicles, and scooters. The lease agreement usually also covers other costs involved with the vehicles like servicing, breakdown cover and tyre replacements.
The rules around tyre replacements will be changing in July 1, affecting everyone who makes a new lease order after this date. The official guidance notes that tyre replacement will still be covered as part of the lease but only if it’s “within fair use”.
Under the new rules, someone with a three-year lease will be able to replace up to six tyres, and up to four of these can be for damage. Those with a five-year lease will be able to replace up to 10 tyres, six of which can be for damage.
According to the RAC, front tyres should be able to do about 20,000 miles before needing to be replaced, while rear tyres can make double that if the vehicle is being used safely.
Users who end up in a situation where their tyre replacements have reached the limit will have options explained to them. The Scheme added: “We’ll always focus on helping you stay mobile, and we’ll make sure you understand any costs before you decide.”
The organisation explained this change is meant to better reflect how people actually use their vehicles: “We’ll refresh our fair usage policy based on how tyres are being used today.
“On average, customers replace two tyres or fewer over a three-year lease. The new limits are designed to cover what most people need.
“We’re also reducing the number of miles included in the lease. So it makes sense to update tyre replacement at the same time.”
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Currently, Motability users can clock up to 20,000 miles before facing an excess charge of 5p per mile. The new rules will reduce this to an average yearly mileage allowance of 10,000 before being charged 25p per mile, including standard rate VAT.
This means that users on a three-year lease will have a total of 30,000 miles before the charge kick in while those on a five year lease with Wheelchair Accessible Vehicles will have a total allowance of 50,000.
Users will need to pay for any additional miles they drive over their allowance at the end of their lease.
Many of the Motability updates have been triggered by a VAT and Insurance Premium Tax change that will apply to new leases from July 1, 2026. To combat the increased costs this will put on the scheme, the organisation said it has to make significant changes to “keep the scheme sustainable”.
People who currently have a lease with the Motability Scheme also won’t be affected by the rule changes. The updates will only apply to new applications made on or after July 1, 2026.
