People receiving Personal Independence Payment (PIP) and Disability Living Allowance (DLA) will face new mileage limits and charges on the Motability Scheme from July 2026. The scheme, which provides cars to disabled claimants, is reducing the standard mileage included with new vehicle orders.
Changes to Mileage Allowance
From 1 July 2026, when ordering a new vehicle through the Motability Scheme, the included mileage will be lowered. Motability Operations explained: "We're making this change as part of wider steps to manage rising costs, including tax changes from the UK Government."
Leases will now have an average annual mileage allowance of 10,000 miles, totaling 30,000 miles over a three-year lease. Wheelchair Accessible Vehicles (WAVs) will have a total allowance of 50,000 miles over five years.
Excess Mileage Charges
Any miles driven above the allowance will be charged at 25p per mile, including standard rate VAT. This applies to orders placed on or after 1 July 2026. For existing leases, the mileage allowance remains unchanged.
Motability Operations stated: "Mileage is one of the biggest factors in the cost of running the Scheme. When we know how many miles a vehicle will travel, we can plan costs more accurately. Our aim is to keep the Scheme affordable and make sure support is fair for all customers."
Clare Ickringill, Chief Asset Risk Officer, added: "We looked for a way to evolve the Scheme that impacts as few people as possible." The changes are designed to protect the Scheme's long-term sustainability.
