The Motability Scheme has introduced several changes in July 2026, including a revised annual mileage allowance that affects many customers across the UK. While the standard mileage limit has been reduced, some people living in eligible rural and isolated areas will receive an additional 3,000 miles each year.
The update follows questions raised in Parliament about whether the eligibility criteria for the extended mileage allowance could be expanded. However, the Department for Work and Pensions (DWP) has confirmed that decisions about the Motability Scheme are made independently by the Motability Foundation and Motability Operations.
The latest changes to the Motability Scheme include a new standard annual mileage allowance of 10,000 miles. Customers who exceed this limit will now pay 25p for every additional mile driven.
Previously, customers could drive up to 20,000 miles before paying an excess mileage charge of 5p per mile.
The updated policy is intended to better reflect typical customer usage while providing additional support for those who regularly need to travel longer distances for essential services.
Changes
The key differences between the previous and current mileage rules are shown below.
| Mileage Rule | Previous | New |
|---|---|---|
| Standard annual allowance | 20,000 miles | 10,000 miles |
| Excess mileage charge | 5p per mile | 25p per mile |
| Rural allowance | Not available | Up to 3,000 extra miles for eligible customers |
According to Motability, around three out of four customers already drive less than the new 10,000-mile annual limit.
Eligibility
The additional 3,000-mile allowance is not available to every Motability customer.
Instead, Motability Operations uses its Rural and Islands Isolation Framework to identify eligible postcodes. The framework relies on national government data to determine whether customers live in areas where access to essential services typically requires longer travel.
Eligible customers will be contacted directly by Motability Operations.
Postcodes
Rather than asking customers to apply, Motability is using postcode data to determine eligibility.
The assessment considers typical journey times from each postcode to important services such as:
- Supermarkets
- Medical facilities
- Schools
- Other essential local services
Customers have been asked not to contact Motability to check whether they qualify, as eligible households will receive direct communication.
DWP
During a parliamentary exchange, MP Sorcha Eastwood asked whether the DWP had considered widening the eligibility criteria for the rural mileage extension.
Responding on behalf of the Government, Sir Stephen Timms explained that while the DWP works closely with Motability because certain disability benefits provide access to the scheme, the Government does not control its day-to-day operation.
He confirmed that the Motability Foundation is responsible for the scheme’s terms and administration, while Motability Operations manages vehicle leases and determines which postcodes qualify for the additional mileage allowance.
Support
Motability has also highlighted that customers who need to travel significantly more for healthcare, education, or employment may still be able to receive support even if they do not live in a qualifying rural area.
The organisation says each customer starts with the same standard mileage allowance, but additional assistance may be available where there is clear evidence of substantially higher essential travel.
Customers requiring extra miles for qualifying reasons are encouraged to review the guidance provided by Motability.
Impact
For many customers, the revised mileage policy is unlikely to result in additional costs, as most already drive fewer than 10,000 miles each year.
However, people who regularly exceed the new limit should review their expected annual mileage to understand whether excess mileage charges may apply or whether they may qualify for additional support.
Those living in rural or isolated communities should wait for official communication from Motability Operations regarding any additional allowance.
The latest Motability changes introduce a lower standard mileage allowance while also providing targeted support for customers living in rural and isolated areas. Although the DWP has confirmed that eligibility decisions remain the responsibility of the Motability Foundation and Motability Operations, eligible customers will automatically be identified using postcode data. Anyone affected by the new rules should review their expected mileage and monitor official updates from Motability for further guidance.
FAQs
What is the new annual mileage limit?
The standard allowance is now 10,000 miles per year.
Who gets the extra 3,000 miles?
Customers living in eligible rural postcodes.
How are eligible postcodes selected?
Using government data on rural isolation.
Should customers contact Motability to ask?
No. Eligible customers will be contacted directly.
