The Department for Work and Pensions (DWP) has indicated that Motability is considering changes to its new 10,000-mile annual limit, following widespread concerns from users and MPs. From July 1, 2026, new contracts will allow only 10,000 miles per year before a 25p-per-mile excess charge applies, down from the previous 20,000-mile allowance at 5p per mile.
Parliamentary Pressure and Government Response
Liberal Democrat MP Will Forster raised the issue in Parliament, asking how the reduction could be mitigated. Sir Stephen Timms, Minister of State for Social Security and Disability, responded that Motability will introduce an exceptions process for very limited situations and will share an update before July 1. Independent MP James McMurdock also questioned the proportion of users exceeding 10,000 miles; the DWP noted that about 75% of customers already drive less than the new limit, but acknowledged some impact.
Concerns for Rural and Essential Travel
Labour MP Samantha Niblett highlighted the potential impact on disabled people in semi-rural and rural areas who rely on vehicles for work, education, healthcare, and essential services. The DWP stated that changes only apply to new leases, with no alterations to existing ones.
Telematics and Driving Behaviour Monitoring
Under the new measures, telematics technology will be installed in all vehicles for new drivers and those with a driver under 30 on the lease. Drivers must fit black boxes and download an app to monitor speed and braking, producing weekly green, amber, or red ratings. Persistent dangerous driving could lead to removal from the scheme.
Motability Operations stated that the Drive Smart initiative responds to rising insurance claims and aims to support safer driving, with early data showing an 18% reduction in accidents. They are reviewing how usage affects scores, emphasizing that high usage will not impact leases due to the scheme's importance for independence.
Petition Gains Momentum
A parliamentary petition calling on Motability to abandon the changes and criticizing government taxes has gathered over 46,800 signatures in three months. It needs 100,000 by July 15 to be considered for a debate.
