A Department for Work and Pensions (DWP) minister has provided a key update regarding changes to the Motability Scheme set to take effect from July 1. These alterations will impact DWP claimants who lease vehicles through the scheme, specifically concerning mileage allowances.
Background of the Changes
Liberal Democrats MP Edward Morello raised a question in the House of Commons, asking: “What assessment his Department has made of the potential impact of reductions to Motability mileage allowances on disabled people living in rural constituencies in the South West.”
DWP minister Sir Stephen Timms, who is currently overseeing a review into Personal Independence Payment (PIP), responded. PIP is one of the qualifying benefits for the Motability Scheme, along with Disability Living Allowance (DLA).
Minister's Response
Timms stated: “Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors. The Department for Work and Pensions meets quarterly with Motability Foundation to discuss the Scheme's operation.”
He added: “The changes to the leasing package were announced on 26 March and include reducing the mileage allowance from 20,000 per year to 10,000 per year. Changes only apply to new leases, and there are no changes to the mileage allowance of existing leases.”
Timms further noted: “Motability Foundation have advised that approximately 75% of customers on the Scheme already use fewer miles than the proposed new mileage allowance. Motability understand that this will affect customers differently and are keeping these changes under review.”
Concerns Over Tyre Replacement Limits
Conservative Party MP Stuart Andrew asked: “Whether his Department has had discussions with Motability Operations Ltd on the potential safety implications of changes to tyre replacement limits under the Motability Scheme.”
Sir Stephen replied: “The changes to the leasing package were announced on 26 March and include a reduction in the number of replacement tyres. This affects new orders made after 1 July 2026.”
He explained: “The change is designed to cover what most people need, and if a customer reaches their tyre limit, Motability Operations will explain their options clearly, helping them to stay mobile. Motability understand this will affect customers differently, and are keeping these changes under review.”
New Fair Usage Limits for Tyres
For lease agreements starting on or after July 1, Motability has introduced new fair usage limits for tyre replacements:
- 3-Year Lease: Up to 6 tyres total, with a maximum of 4 allowed for accidental damage.
- 5-Year Lease (WAV): Up to 10 tyres total, with a maximum of 6 allowed for accidental damage.
These adjustments aim to align the scheme with typical usage patterns while ensuring continued support for those who rely on the Motability Scheme for mobility.
