Disabled drivers to see major changes to the Motability scheme from July 1
Disabled people using the Motability car leasing scheme are set to face higher costs, with new mileage limits, tyre rules, travel charges and updated vehicle prices from tomorrow.
Customers taking new leases after July 1 will see an average increase to advance payments of between £300 and £400.
Motability’s new quarterly price list will be published tomorrow, with updated prices for vehicles available from the same day the new scheme rules come into force.
The changes will apply to new orders placed on or after July 1, while existing customers will remain on their current lease terms until they renew.
In April 2026, Motability Operations detailed how the changes follow new tax measures announced in the Autumn Budget last year, which increased the cost of running the scheme.
The annual mileage allowance for new customers will fall to 10,000 miles a year, equivalent to 30,000 miles over a standard three-year lease.
Customers with a five-year Wheelchair Accessible Vehicle lease will receive a 50,000-mile allowance. Drivers who exceed the limit will pay 25p per mile, including VAT, although Motability stated customers with exceptional circumstances may be eligible for additional support.
New fair use limits will also apply to tyre replacements. Three-year leases will include up to six replacement tyres, including a maximum of four damaged tyres, while five-year WAV leases will include up to 10 replacement tyres, with up to six for damage.
Customers travelling to Europe will also need to obtain a VE103 certificate through the RAC before leaving the UK and pay a new £22 administration fee. Motability said fewer than one per cent of customers used breakdown cover abroad during 2025.
Under the new rules, VAT will only apply to advance payments made for more expensive Motability vehicles, while the part of the lease paid for through a customer’s qualifying disability benefit will remain free from VAT.
