MPs have raised serious concerns over the Motability Scheme's decision to reduce the annual mileage allowance from 20,000 to 10,000 miles for new leases starting 1 July 2026. The change will see drivers charged 25p per mile beyond the new limit, a sharp increase from the previous 5p per mile excess fee. Disabled people who exchange their higher-rate mobility allowance for a vehicle every three years will be affected.
In parliamentary questions, Liberal Democrat MP Will Forster asked Work and Pensions Secretary Pat McFadden whether the department had reviewed the impact of the mileage reduction. Labour's Samantha Niblett pressed for an assessment of the effect on disabled people in semi-rural and rural areas, particularly those reliant on vehicles for work, education, healthcare, and other essential services. Plaid Cymru's Liz Saville Roberts and Liberal Democrat Ben Maguire also sought clarity on rural impacts and consultation adequacy.
Conservative Andrew Snowden questioned whether exemptions or higher allowances could be granted for users with significant healthcare travel needs, suggesting the previous average of 12,000 miles per annum as a benchmark. Labour's Niblett further asked about steps to prevent geographic inequality.
Responding on 20 April, Minister of State for Social Security and Disability Sir Stephen Timms stated that the Motability Foundation and its Board of Governors are responsible for the scheme's terms. He noted that changes apply only to new leases, with no impact on existing ones. Timms said approximately 75% of customers already use less than 10,000 miles annually, but acknowledged an impact on some users and that mitigation options are being considered.
The new measures also include mandatory telematics technology in vehicles for new drivers or those with a driver under 30 listed on the lease. Black boxes will track driving behaviour, including speed and braking, producing weekly green, amber, or red ratings. Persistent dangerous driving—two consecutive red weeks or four within 12 months—could lead to removal from the scheme. Motability Operations stated the Drive Smart initiative responds to rising insurance claims and aims to support safer driving, with early figures indicating positive uptake.
