From Wednesday 1 July 2026, Department for Work and Pensions (DWP) benefits claimants using the Motability Scheme will face a new mileage rule. When ordering a new vehicle, the standard mileage included in leases will be reduced to an average of 10,000 miles per year, equating to 30,000 miles over a three-year lease, Motability has confirmed.
Details of the new mileage allowance
Motability Operations, which runs the Motability Scheme for disabled claimants on benefits such as Personal Independence Payment (PIP) and Disability Living Allowance (DLA), announced the change. Wheelchair Accessible Vehicles (WAVs) will have a total allowance of 50,000 miles over five years. Any miles driven above the allowance will be charged at the end of the lease at 25p per mile including standard rate VAT, or 21p per mile if the lease benefits from VAT concessions.
Reason for the change
Motability 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, make sure support is fair for all customers and protect the Scheme for years to come."
Impact from government tax changes
Government tax changes apply to all lease agreements starting from 1 July 2026. The lease agreement begins on the day the car is collected, so if collection is after this date, VAT will be applied to some lease costs, including excess mileage and early termination fees. However, the Advance Payment will not change regardless of collection date, as a price freeze locks in the price at the time of application.
