Motability Scheme Increased Its Excess Mileage Charge Fivefold From 1 July and Cut Tyre Allowances for 700,000 Drivers

From 1 July 2026, the Motability Scheme quietly changed several of its core terms for customers placing new orders. The mileage allowance for new leases has been capped for the first time, the charge for exceeding it has risen sharply, and the number of replacement tyres covered during a lease has been reduced. None of these changes affect the roughly 700,000 customers already holding active leases, but anyone placing a new order from July onwards is on different terms to the customer whose identical car arrived before the change.

The Mileage Cap That Did Not Exist Before

The most significant structural change is the introduction of an annual mileage cap. Before 1 July 2026, Motability leases carried no formal mileage limit. Customers could drive as many miles as their circumstances required without facing a mileage-related charge at the end of the agreement.

New orders placed from 1 July now carry a cap of 10,000 miles per year. Over a standard three-year lease, that amounts to 30,000 miles in total. Customers taking a five-year Wheelchair Accessible Vehicle lease are permitted 50,000 miles over the term. For the majority of Motability customers whose driving needs are local or moderate, 10,000 miles a year will be sufficient. For those who rely on the scheme for regular longer journeys, hospital appointments at distant centres, or work-related travel, the cap introduces a new financial consideration that was not previously part of the calculation.

The Excess Mileage Charge Has Risen Sharply

Before the July 2026 changes, customers who did exceed any informal mileage guide faced an excess mileage charge of 5p per mile. That figure has now risen to 25p per mile for new orders. A customer who drives 12,000 miles in a year rather than the permitted 10,000 will face a charge of £500 at lease end for those extra 2,000 miles, where previously the same distance would have resulted in a charge of £100.

For a customer who regularly drives 13,000 miles a year, the annual overage under new terms amounts to £750 in end-of-lease charges. Over a three-year agreement, that customer would face £2,250 in excess mileage costs on top of the standard advance payment and any additional rental contribution they already make. Motability has made the advance payment the central visible cost of using the scheme for years, but for higher-mileage customers the excess charge under the new terms becomes a significant secondary cost.

Customers should not assume that their annual mileage from previous leases will fall within the new cap. Anyone whose typical use has historically exceeded 10,000 miles a year should calculate their expected end-of-lease charge before committing to a new order under the revised terms.

Tyre Allowances Have Been Reduced

The scheme has also changed the number of replacement tyres covered during a lease for new orders. Under the previous terms, the tyre replacement allowance was more generous. From July 2026, new three-year leases are covered for a maximum of six replacement tyres during the agreement, of which up to four can be replaced because of damage. Customers on five-year Wheelchair Accessible Vehicle leases are covered for up to ten replacement tyres, with a maximum of six for damage.

For most customers driving typical mileage on standard roads, six tyres over three years is likely sufficient. A front-wheel drive car wearing through a pair of fronts annually, plus occasional replacements for punctures or kerbing damage, can reach the limit in a full three-year term. Customers who live in areas with poor road surfaces, or whose vehicles are higher-powered models with faster tyre wear, may find the new cap more restrictive than the previous arrangement.

Tyre replacements beyond the allowance become the customer’s responsibility and must be organised and funded outside the scheme. Unlike the excess mileage charge, which is assessed at the end of the lease, tyre replacements beyond the cap need to be managed by the customer during the agreement rather than settled at return.

Who Is and Is Not Affected

These changes apply exclusively to new orders placed from 1 July 2026 onwards. Customers whose current lease began before that date are on the terms they signed up for. Nothing changes for existing customers until their agreement ends and they place a new order. At that point, the new customer placing a fresh order will be on the revised terms.

The Motability Scheme serves around 700,000 disabled drivers in the United Kingdom who receive the enhanced rate of the mobility component of Personal Independence Payment, Disability Living Allowance, or the Armed Forces Independence Payment. The scheme provides a new car, insurance, servicing, breakdown cover and tyre assistance in exchange for the customer’s mobility allowance. The allowance varies by benefit type, and many customers make an additional advance payment or weekly contribution depending on the car chosen.

Customers whose eligibility benefit is reassessed or who choose to leave the scheme mid-agreement may face early termination charges that also changed under the July 2026 review. Anyone considering leaving a new agreement before the scheduled end date should request a current schedule of early return charges from Motability Operations before making a decision.

Five New Car Brands Added to the Scheme

Alongside the changes to lease terms, Motability expanded the range of vehicles available on the scheme from July 2026. Five additional car brands were added, increasing the choice of models available to customers who are placing new orders. Motability has not detailed which brands are included in the expansion in a single public announcement, but dealers from the newly added manufacturers will be able to facilitate Motability orders from the date of their onboarding onto the scheme.

For customers approaching the end of an existing lease and considering their next vehicle, the expanded brand list means a wider range of adaptations, body styles and powertrains to consider. Customers with specific accessibility requirements should confirm with their chosen dealer whether the adaptations they need are available and fully covered under the scheme terms before placing an order.

Steps to Take Before Placing a New Order

Any Motability customer approaching the end of their current agreement should calculate their expected annual mileage based on actual use over the past two to three years rather than their estimate at the start of the previous lease. Motability Operations provides access to mileage records from previous agreements, and dealers can supply this information during the renewal consultation.

Customers who consistently drive more than 10,000 miles a year should ask the dealer to model the expected excess mileage charge at their typical usage before committing to any new order. The charge at 25p per mile compounds quickly for customers whose real-world use is significantly above the cap, and understanding the true total cost of the agreement is essential before signing.

For customers whose driving needs are genuinely higher, Motability offers a higher mileage option on some vehicles through its standard lease terms. Asking specifically about higher mileage packages, and comparing the total cost including any additional contribution against the expected excess mileage charge on a standard cap, will identify the more cost-effective route for heavier users.