“If we did nothing, the average cost of a new lease would increase by around £1,100,” stated Andrew Miller, a spokesperson for the Motability Scheme, highlighting the financial pressures that have prompted upcoming changes to the motability mileage allowance.
Starting July 1, 2026, the mileage allowance for Wheelchair Accessible Vehicles (WAV) will be significantly reduced from 100,000 miles to 50,000 miles over a five-year lease. This change is expected to impact many of the approximately 890,000 disabled individuals who rely on the Motability Scheme across the UK.
The reduction in mileage allowance means that WAV customers who drive more than the new limit will incur excess mileage charges, estimated to be around 21p per mile. For instance, a WAV customer who drives 75,000 miles over a five-year lease would exceed the new limit by 25,000 miles, resulting in excess mileage charges of approximately £5,250.
In addition to the changes for WAVs, standard cars will also see a reduction in their mileage allowance, dropping from 60,000 miles to 30,000 miles over a three-year lease. This further illustrates the tightening of the scheme’s parameters, which many users rely on for their mobility needs.
Moreover, the introduction of VAT and Insurance Premium Tax (IPT) will lead to an expected increase in advance payments for new leases by about £400. These tax changes are primarily driven by the UK Government’s decision to apply these additional costs to the scheme, which Motability estimates will add approximately £300 million in annual costs.
“Together, these tax changes mean it will cost significantly more to run the scheme,” Miller added, emphasizing the financial implications for both the organization and its users. The average cost of a new lease would have risen even more dramatically without these adjustments.
As the changes approach, many users are left to navigate the implications of reduced mileage allowances and increased costs. The adjustments are a response to broader economic pressures and aim to ensure the sustainability of the Motability Scheme in the long term.
Details remain unconfirmed regarding how these changes will be received by the community of users, but the impact is expected to be felt widely as the new policies take effect in July 2026.