Motability has announced exceptions to its controversial new mileage rules following a campaign against changes that halved the free mileage allowance and raised the cost per additional mile from 5p to 25p. The update, issued on Tuesday, July 14, 2026, outlines additional support for customers with the highest travel needs, particularly those in rural areas or with long-distance requirements for healthcare, education, or employment.
New Rules and Campaigner Backlash
From July 1, 2026, Motability reduced the standard mileage allowance from 20,000 miles to 10,000 miles before excess charges apply, and increased the excess charge from 5p to 25p per mile. Campaigners argued this disproportionately affected rural residents and those needing to travel long distances for work or medical care. In response, Motability has now introduced exceptions for new contracts placed after July 1, 2026, or September 1, 2026 for those receiving allowances from Social Security Scotland.
Exceptions for Healthcare, Education, and Employment
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." The scheme will consider additional support for journeys related to healthcare (hospital and GP appointments, specialist treatment), education (own education or training, taking children to school), and employment (travel to and from work). Strict evidence is required, and only journeys benefiting the eligible mobility allowance recipient will be considered.
Rural Area Support
Motability will add up to 3,000 extra miles per year for customers in identified rural areas with limited access to essential services, using government data on travel times to grocery shopping, healthcare, and education. Eligible customers will be notified directly via email or letter. The scheme stated: "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 Additional Support Is Calculated
Customers needing more than 3,000 miles annually for healthcare, education, or employment can request support. For approved miles above 3,000, the excess mileage charge is reduced: 10p per mile for up to 5,000 additional miles, and 0p per mile for any miles above 5,000. For example, a customer needing 4,000 miles for such journeys would receive support for 1,000 miles. Motability will assess requests based on supporting information and notify customers of the outcome.
Background and Previous Changes
Data from early 2026 shows 860,000 people in the UK used the Motability Scheme, which provides cars, Wheelchair Accessible Vehicles, scooters, or powered wheelchairs with running costs. The scheme has faced rising costs due to tax changes from the Autumn Budget. Earlier, Motability suspended its Drive Smart black box programme after user experience fell short of expectations.
How to Request Support
Customers can contact Motability when ordering a vehicle or at any point during a lease if circumstances change. Motability will discuss journeys, understand circumstances, ask for supporting information if eligible, assess requests fairly, and inform customers of the outcome and any support available.
