Ministers have responded to parliamentary concerns over changes to the Motability Scheme, which will see the annual mileage allowance for new leases cut from 20,000 to 10,000 miles from July 1, 2026. Under the new contracts, drivers will be charged 25p per mile for any distance travelled beyond the reduced limit, a significant increase from the previous excess rate of 5p per mile.
Several MPs, including Liberal Democrat Will Forster, Labour's Samantha Niblett, Plaid Cymru's Liz Saville Roberts, Liberal Ben Maguire, and Conservative Andrew Snowden, raised questions about the impact on disabled people, particularly those in rural and semi-rural areas who rely on their vehicles for longer journeys to work, education, and healthcare. They also questioned the adequacy of the consultation and the potential for exemptions or higher allowances for those with significant healthcare travel needs.
In a written answer dated April 20, Minister of State for Social Security and Disability Sir Stephen Timms said responsibility for the scheme's terms lies with Motability Foundation and its Board of Governors. He noted that the changes apply only to new leases and that around 75% of existing customers already use fewer than 10,000 miles per year. He added that the Foundation has acknowledged the impact on some customers and is considering whether it can be mitigated in limited circumstances.
The new leasing package also includes the introduction of telematics technology, with black boxes fitted to all cars leased by new drivers or anyone under 30 on the lease. The system monitors driving behaviour, including speed and braking, and produces a weekly green, amber, or red rating. A red week prompts feedback, and continued poor driving for two consecutive weeks or four weeks in a year could lead to removal from the Scheme.
Motability Operations said the average motorist covers 7,500 miles annually, and that the 'Drive Smart' initiative was introduced in response to rising insurance claims. The company said early data suggests customers using the system have 18% fewer accidents and stressed that it is listening to customer feedback as the programme is reviewed.
