From Wednesday, July 1, 2026, new Motability rules will come into effect, impacting people receiving Personal Independence Payment (PIP), Disability Living Allowance (DLA), and four other benefits. The Department for Work and Pensions (DWP) has confirmed the changes, which include adjustments to mileage allowances, tyre replacements, and the introduction of a new administrative fee for travel certificates.
Key Changes to Motability Scheme
Andrew Miller, chief executive of Motability Operations, acknowledged the difficulty of the changes, stating: "Before I do, I want to acknowledge that some of these changes will be difficult and may affect you. I understand that any increase in costs or changes to what you receive can be worrying and frustrating, particularly when you rely on the scheme every day for your independence." He added that the all-inclusive package—covering insurance, servicing, maintenance, and breakdown cover—remains protected.
The new rules apply to claimants of PIP, DLA, Adult Disability Payment (ADP), Child Disability Payment (CDP), Armed Forces Independence Payment (AFIP), and War Pensioners' Mobility Supplement (WPMS).
Mileage Allowance Adjustments
Mileage allowances are changing to 30,000 miles for a new three-year lease and 50,000 miles for a new Wheelchair Accessible Vehicle (WAV) five-year lease. On average, customers drive around 7,500 miles per year. Those needing to drive more than their allowance can pay for extra mileage.
Tyre Replacement Policy
New leases will include tyre replacements within fair use limits: six tyres during a three-year lease (up to four for damage) and ten tyres during a five-year lease (up to six for damage). Most customers replace two or fewer tyres during a three-year lease.
New VE103 Certificate Requirement
From July 1, 2026, a VE103 certificate will be required before traveling outside the UK. A £22 admin fee for the VE103 will apply to orders placed on or after that date, and the certificate can still be obtained from the RAC.
Exception for Scottish Claimants
For Scottish claimants, Motability explained: "The changes we announced to the Motability Scheme lease package will not apply to you from 1 July 2026. This is because the Scheme in Scotland operates under a separate agreement called the Accessible Vehicles and Equipment Scheme (AVES)." They added that they are working with the Scottish Government to understand how these changes may affect AVES in the future, and claimants can continue to order vehicles as normal with the same all-inclusive package.
