Motability has announced exceptions to its new mileage allowance rules after campaigners protested the changes. Starting July 1, 2026, the standard mileage allowance was reduced from 20,000 miles to 10,000 miles, with the excess charge increased from 5p to 25p per mile. However, following backlash, the scheme now offers additional support for customers who need to travel significantly for healthcare, education, or employment.
New Support for High-Travel Customers
For orders placed after July 1, 2026 (or September 1, 2026 for those receiving allowances from Social Security Scotland), customers may receive extra miles and reduced excess charges. Motability stated: "We know that every customer's circumstances are different. The standard mileage allowance gives most customers enough miles for everyday journeys. We know three out of four customers are already driving below the new limit. But some people need to travel much further for healthcare, education or employment."
Exceptions for Rural Areas
Motability will add up to 3,000 additional miles per year for customers in rural areas, identified using government data on travel time to essential services. The scheme will check postcodes and notify eligible customers by email or letter. The statement said: "We understand that living in the most rural areas often means having to travel further to access everyday services. To support this, we will add up to 3,000 additional miles per year onto the lease for certain customers."
How Support is Calculated
Support is available for journeys exceeding 3,000 miles per year for healthcare, education, or employment. For approved miles, the excess charge is reduced: 10p per mile for up to 5,000 additional miles, and 0p per mile for any miles above 5,000. Motability explained: "The standard mileage allowance is designed to cover everyday travel... We will only begin to look at support if you think you'll need more than 3,000 miles for healthcare, education and employment."
Background and Impact
The changes were driven by rising costs, including tax changes from the Autumn Budget. As of early 2026, 860,000 people in the UK used the Motability Scheme. The scheme also recently suspended its Drive Smart black box programme due to user experience issues. Campaigners had argued the original changes would unfairly impact rural residents and those with long commutes for work or health needs.
How to Request Support
Customers can contact Motability when ordering a vehicle or during their lease if circumstances change. The process involves discussing journeys, providing supporting information, and receiving a fair assessment. Motability stated: "If you're likely to exceed your mileage allowance because much of your travel is for healthcare, education or employment, we may be able to help."
