MPs have raised concerns over the decision to reduce the mileage allowance for Motability Scheme vehicles from 20,000 to 10,000 miles per year, effective from July 1, 2026. Under the new contracts, drivers will be charged 25p per mile for any distance travelled beyond the 10,000-mile limit, a significant increase from the previous excess charge of 5p per mile. The changes apply only to new leases, with existing leases unaffected.
In a series of parliamentary questions, Liberal Democrat MP Will Forster asked the Secretary of State for Work and Pensions whether the department had reviewed the impact on disabled people of the mileage reduction. Labour's Samantha Niblett raised concerns about the effect on disabled people and families in semi-rural and rural areas who rely on their vehicles for work, education, healthcare, and other essential services. Plaid Cymru's Liz Saville Roberts also questioned the impact on disabled people living in rural areas.
Liberal Democrat Ben Maguire asked about the adequacy of the consultation on the changes, while Conservative Andrew Snowden inquired about potential exemptions or higher mileage allowances for users with significant healthcare travel needs. In response, Minister of State for Social Security and Disability Sir Stephen Timms stated that responsibility for the scheme's terms lies with the Motability Foundation and its Board of Governors. He noted that approximately 75% of customers already use fewer than 10,000 miles annually and that the Foundation is considering mitigating measures for those affected.
Alongside the mileage reduction, the scheme will introduce telematics technology, including black boxes and a mobile app, to monitor driving behaviour. Drivers will receive weekly assessments rated green, amber, or red. Persistent dangerous driving could lead to removal from the scheme. Motability Operations said the Drive Smart initiative aims to reduce insurance claims and has already led to 18% fewer accidents among early users.
