The UK’s Motability scheme, which provides car leasing services to people with disabilities, has announced significant reductions in mileage allowances starting July 1, 2026. The change has sparked concern among many users who fear increased costs and a reduced level of service.
Under the new terms, drivers will be allowed to drive up to 10,000 miles annually without extra charges. Any mileage above this limit will incur a 25p fee per mile. Previously, the allowance was 20,000 miles with a 5p per mile charge for additional distance. This tightening of mileage limits is driven by rising costs from government-imposed taxes and soaring insurance, repair, and maintenance expenses.
Andrew Miller, CEO of Motability Operations, addressed these concerns in a recent interview. He acknowledged the anxiety among users, stating, “Mileage is a huge concern for some customers. We’re making these changes because of sudden government-imposed costs. To keep the scheme sustainable, we must adjust, though 75% of customers will remain unaffected. We fully recognize this is challenging for those impacted.”
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Motability emphasized that if no adjustments had been made, average lease costs would have surged by about £1,100. By limiting mileage, the scheme aims to contain expenses and maintain essential services, including insurance coverage.
Separately, the organisation has paused its controversial Drive Smart black box initiative, which was intended to curb insurance costs by encouraging safer driving among new and younger drivers. The decision came after widespread customer feedback highlighted that the device caused anxiety and failed to meet user needs. Miller said, “While Drive Smart helped reduce claims, the negative user experience was clear, so we paused to reconsider.”
The mileage changes have also drawn parliamentary attention. Liberal Democrat MP Will Forster recently questioned how the reduction might be mitigated for affected drivers. In response, Minister of State for Social Security and Disability, Sir Stephen Timms, explained that Motability Foundation and its Board of Governors are responsible for managing the scheme and its exceptions. Timms confirmed that “Motability will introduce an exceptions process for very limited situations and provide an update before July 1.”
Details of these exceptions are yet to be announced, leaving some uncertainty for those who might need additional mileage.