Motability customers are being advised of an important update to mileage rules that took effect from July 1, alongside a delay to promised guidance on exemptions that could affect thousands of disabled drivers.
Under the new rules, all new Motability car leases now come with a standard annual mileage allowance of 10,000 miles. Drivers who exceed this limit will be charged 25p for every additional mile. This replaces the previous allowance of 20,000 miles, which carried a much lower excess charge of 5p per mile.
The changes apply only to new contracts and do not affect existing leases.
Change
Motability says the mileage reduction was introduced in response to higher costs facing the scheme, particularly new tax charges announced in the Autumn Budget that take effect from July 1. According to Motability, those costs would have added an average of £1,100 to lease prices if no other changes had been made.
The organisation also states that around 73 to 75 percent of current customers already drive fewer than 10,000 miles a year and will therefore not be affected by the new limit.
However, disability groups and some MPs have raised concerns that the new structure could disproportionately affect people living in rural areas or those who need to travel long distances for work, education, or medical care.
Delay
Motability had previously told the Department for Work and Pensions that it would publish details of mileage exceptions by July 1. That deadline has now been missed.
In an update issued this week, Motability confirmed that full details of the exceptions process will instead be published on July 8, 2026.
The organisation said it recognises that some customers have significantly higher travel needs and is developing a support process to help cover additional mileage costs in certain circumstances.
Exceptions
Motability says support will not be automatic and applications will be assessed individually. Decisions will depend on personal circumstances, the types of journeys required, and the supporting evidence provided.
Travel that may be considered under the exceptions framework includes:
Healthcare
- Hospital and GP appointments
- Specialist treatment
- Other essential healthcare or support services
Education
- Travel to education or training
- Taking children to and from school
Employment
- Travel to and from work
Motability has confirmed that travel for holidays or leisure will not be included when assessing requests for additional support.
Parliamentary
Concerns over the mileage changes have been raised in Parliament. Liberal Democrat MP Edward Morello asked what assessment had been made of the impact on disabled people living in rural parts of the South West.
Responding on behalf of the government, Social Security and Disability Minister Sir Stephen Timms said responsibility for the scheme sits with the Motability Foundation and its board. He added that changes apply only to new leases and that most customers already travel within the new mileage limit.
He also confirmed that the Department for Work and Pensions meets quarterly with Motability to discuss how the scheme operates.
Context
The mileage update comes amid wider challenges for Motability. The organisation recently suspended its Drive Smart black box scheme after acknowledging that user experience had not met expectations. That programme required first-time customers and those with named drivers under 30 to install a monitoring device, although Motability says it is unrelated to the mileage changes.
Motability has stressed that Drive Smart was introduced to manage rising insurance costs, while the mileage adjustment was driven by tax changes.
Next
From July 8, Motability says it will publish full details covering:
- Who can apply for mileage support
- How to request help
- What evidence may be required
- How applications will be assessed
- What support is available if approved
- How changes in circumstances will be handled
- How to request a review if a decision is disputed
Customers considering ordering a new vehicle who believe they may exceed the mileage limit are being advised to wait until the full guidance is published. Those whose leases end before July 8 are encouraged to contact Motability directly to discuss their options.
Motability says early contact before a lease begins can help customers understand whether the scheme meets their travel needs under the new rules.
FAQs
When did the new Motability mileage rules start?
The new rules took effect from July 1, 2026.
How many miles are allowed on new leases?
New contracts include a 10,000-mile annual allowance.
What is the excess mileage charge?
Drivers pay 25p for each mile over the limit.
Do the changes affect existing leases?
No, current contracts keep their original mileage terms.
