Motability's new mileage rules take effect from July 1, reducing the annual allowance from 20,000 to 10,000 miles before excess charges apply. Drivers exceeding the new limit will pay 25p per mile, up from the previous 5p per mile for miles beyond 20,000. The changes have raised concerns about the impact on disabled users, particularly those in rural areas or who need to travel long distances for work.
Exception Details Delayed
Motability had committed to publishing 'exceptions' by July 1 but has now confirmed it missed this deadline. In a new update, the scheme announced that the full details, including how to apply and when customers can request support, will be published on July 8, 2026. The statement said: “We know that every customer’s circumstances are different. For many customers, the standard mileage allowance should provide enough flexibility for everyday journeys. But we also know that some customers need to travel much further because of healthcare, education or employment.”
The scheme added: “We are developing support to help with the cost of additional mileage for customers whose travel for these reasons is significantly higher than the standard mileage allowance is designed to cover. We’re currently finalising the way customers will apply for this support to make sure requests are assessed fairly and consistently.” Support is not automatically available; each request will be considered individually based on circumstances and supporting information.
Parliamentary Concerns
Liberal Democrat MP Edward Morello asked the Secretary of State for Work and Pensions about the impact on disabled people in rural South West constituencies. In response, Minister of State for Social Security and Disability Sir Stephen Timms said: “Responsibility for the concerns and administration of the Scheme sits with Motability Foundation and its Board of Governors. The Department for Work and Pensions meets quarterly with Motability Foundation to discuss the Scheme's operation.” He noted that changes only apply to new leases, and approximately 75% of customers already use fewer than 10,000 miles per year.
Reasons for the Change
Motability explained that the mileage reduction was driven by new tax costs announced in the Autumn Budget, which add an average of £1,100 to leases from July 1. The scheme stated: “The majority of customers (73%) currently travel 10,000 miles a year or less and would be unaffected.” The changes are separate from the suspended Drive Smart black box programme, which was introduced to manage rising insurance costs.
Eligible Journeys for Exceptions
Motability will consider additional support for journeys related to healthcare, education, or employment. Eligible healthcare journeys include hospital and GP appointments, specialist treatment, and other essential healthcare or support services. Education-related travel includes travel to one's own education or training, as well as taking children to and from school. Employment-related travel covers commuting to and from work. Holidays or leisure activities will not be considered for additional support.
Next Steps
From July 8, Motability will publish information on who can apply, how to request support, what supporting information may be required, how requests will be assessed, the support available if approved, what to do if circumstances change, and how to request a review of a decision. The scheme advises customers considering ordering a vehicle to wait until July 8 before making a decision, and those with leases ending before that date to call for options.
