The Department for Work and Pensions has responded to parliamentary questions regarding Motability's upcoming changes, which will reduce the mileage allowance and tyre replacements for new leases from July 1, 2026. The adjustments aim to keep the scheme sustainable following tax changes announced by Chancellor Rachel Reeves.
From July 1, 2026, new contracts will permit 10,000 miles per year before a 25p per mile charge applies, down from the current 20,000 miles with a 5p excess fee. Additionally, the number of free tyres will be reduced: three-year leases will get up to six tyres (max four for accidental damage), and five-year leases for wheelchair-accessible vehicles will get up to ten (max six for accidental damage).
Liberal Democrat Edward Morello raised concerns about the impact on disabled people in rural areas. In response, Minister Sir Stephen Timms stated that changes only apply to new leases and that about 75% of customers already use fewer than 10,000 miles annually. He added that Motability is keeping the changes under review and will announce an exceptions process before July 1.
Conservative Stuart Andrew questioned the safety implications of reduced tyre limits. Sir Stephen noted that the changes are designed to cover most people's needs and that Motability will explain options if customers reach their tyre limit. Motability CEO Andrew Miller acknowledged that mileage is a huge concern for some customers but stressed the need to adjust the scheme due to sudden government costs, warning that without changes, average lease costs would have increased by £1,100.
