The Department for Work and Pensions (DWP) has responded to questions in Parliament following Motability’s announcement of changes to its leasing terms, including reduced mileage allowances and updated tyre replacement limits. The updates, which take effect for new leases from 1 July 2026, have prompted scrutiny over how they may affect disabled drivers, particularly those who rely on higher annual mileage.
Motability, which provides leased vehicles to eligible disabled people in exchange for mobility allowance payments, says the changes are designed to manage rising costs and maintain the long-term stability of the scheme.
Mileage
Under the revised terms, new Motability leases from July 2026 will allow up to 10,000 miles per year before additional charges apply. Once that threshold is exceeded, drivers will be charged 25p per mile.
This marks a reduction from the previous structure, which allowed up to 20,000 miles annually with an excess charge of 5p per mile. The adjustment represents both a lower mileage allowance and a higher penalty rate for additional use.
According to Motability, around 75 percent of customers already travel less than 10,000 miles per year, meaning they would not be directly affected by the change. However, the remaining users who rely on higher mileage are expected to face increased costs.
Tyres
Alongside mileage changes, Motability has also updated its policy on tyre replacements for new leases starting after 1 July 2026.
For standard three-year leases, customers will be entitled to up to six tyres in total, with a maximum of four covering accidental damage. For five-year Wheelchair Accessible Vehicle (WAV) leases, the allowance increases to up to 10 tyres, with up to six for accidental damage.
Concerns have been raised about whether these limits could affect safety or maintenance flexibility. Motability has said the changes reflect typical usage patterns and are intended to align service levels with most customer needs.
Parliament
The changes were discussed in Parliament following written questions from MPs, including concerns about how reduced mileage limits might affect disabled people in rural areas.
In response, the Minister of State for Social Security and Disability, Sir Stephen Timms, stated that the administration of the scheme is the responsibility of the Motability Foundation and its board. He also noted that the Department for Work and Pensions meets with the foundation regularly to review operations.
The government confirmed that the changes apply only to new leases and will not affect existing agreements.
Costs
Motability has linked the policy adjustments to rising operational expenses and recent tax changes announced in the Autumn Budget. The organisation has stated that without changes to its structure, average lease costs could increase significantly, with estimates suggesting an additional £1,100 per lease.
According to Motability, reducing mileage allowances helps lower insurance, maintenance, and repair costs, which are major components of the overall leasing price.
The organisation argues that the updated structure is intended to keep the scheme financially sustainable for the majority of users.
Concerns
While Motability has emphasised cost management and long-term sustainability, some concerns have been raised about how the changes may affect users with higher mobility needs.
Rural users and those with complex health conditions may be more likely to exceed the new mileage limits, which could result in additional charges. Motability has said it is developing an exceptions process, although details have not yet been published.
The organisation has also acknowledged that the changes will affect customers differently and says the policy will remain under review after implementation.
Drive Smart
A separate initiative, known as the Drive Smart programme, was recently suspended after receiving criticism from users. The scheme had required some new customers, particularly younger drivers and first-time leaseholders, to install a monitoring device intended to manage insurance costs.
Motability confirmed that the programme did not relate to the mileage changes and was introduced for insurance management purposes. The suspension followed feedback that the experience did not meet expectations.
Outlook
The updated Motability terms reflect a broader effort to balance rising costs with continued access to leased vehicles for disabled users. While most customers are expected to remain unaffected, policy changes may create new financial considerations for higher-mileage drivers once the new rules take effect.
Further clarification, particularly around exceptions and operational details, is expected ahead of the July 2026 implementation date.
Bottom line
Motability’s revised mileage and tyre policies mark a notable shift in how the scheme manages costs and usage. The DWP has confirmed that the changes apply only to new leases, while Motability maintains they are necessary to ensure long-term affordability.
However, questions remain over how higher-mileage users will be supported once the new limits begin.
FAQs
What is the new Motability mileage limit?
New leases from July 2026 allow 10,000 miles per year before extra charges apply.
How much is the excess mileage charge?
The charge is 25p per mile over the limit.
Do these changes affect existing leases?
No, they apply only to new leases starting after 1 July 2026.
What are the new tyre limits?
Up to 6 tyres for 3-year leases and 10 tyres for 5-year WAV leases.
