Drivers claiming Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will face a new 25p per mile charge from Wednesday, 1 July 2026, under updated Motability Operations rules introduced by the Labour government and the Department for Work and Pensions (DWP).
The changes apply to orders placed on or after that date. The Motability Scheme, which provides vehicles to disabled people, has set a standard mileage allowance, and any additional miles driven beyond that limit will now cost 25p per mile, including standard rate VAT.
Understanding the new mileage charges
Motability stated: "We know that every customer's circumstances are different. For many customers, the standard mileage allowance should provide enough flexibility for everyday journeys." However, the organisation acknowledged that some users need to travel significantly further for reasons such as healthcare, education, or employment.
To address this, Motability is developing a support system for those with higher mileage needs. A statement read: "We are developing support to help with the cost of additional mileage for customers whose travel for these reasons is significantly higher than the standard mileage allowance is designed to cover." Full details, including how to apply, will be published on 8 July 2026.
Support for high-mileage drivers
Support will not be automatic. Motability explained: "We're currently finalising the way customers will apply for this support to make sure requests are assessed fairly and consistently. Support isn't automatically available, we'll consider each request individually and the outcome will depend on your individual circumstances, the journeys you need to make and the supporting information available."
Majid Ismailzada, Director at GM Direct Hire, commented: "July is already an expensive month for many households because of summer travel, higher fuel spend and preparing for family holidays. For disabled motorists who need to replace or order a vehicle through the Motability Scheme, these changes could add another unexpected cost." He advised: "Anyone affected should make sure they fully understand how the changes apply to their specific vehicle before ordering. Not every customer will see the same increase, and Wheelchair Accessible Vehicles remain exempt from the VAT changes."
Advice for customers considering a new vehicle
Motability urged customers to consider waiting until the full information is released on 8 July before ordering, especially if they anticipate driving more than the standard allowance. The organisation said: "If you're considering ordering a vehicle and think your travel needs may be higher than the standard mileage allowance, you may wish to wait until we've published the full information on 8 July before making your decision."
For those whose lease ends before 8 July, Motability advised calling to discuss options. Similarly, new joiners who expect to exceed the allowance should wait or contact Motability beforehand. "Talking to us before your lease starts means we can discuss what support may be available and help you decide whether the Scheme meets your travel needs," the organisation added.
