“If we did nothing, the average cost of a new lease would increase by around £1,100,” stated Andrew Miller, a representative of the Motability Scheme, highlighting the financial pressures facing users of the scheme. This statement comes as the UK government prepares to implement significant changes to the motability mileage allowance starting July 1, 2026.
The mileage allowance for Wheelchair Accessible Vehicles (WAV) will be reduced from the current limit of 100,000 miles to 50,000 miles over a five-year lease. This change means that WAV customers will now average only 10,000 miles per year, a substantial decrease that could impact their mobility options. The excess mileage charge for users exceeding this new limit is expected to be around 21p per mile, which could lead to significant additional costs for those who rely on their vehicles for daily activities.
For instance, a WAV customer driving 75,000 miles over a five-year lease would exceed the new limit by 25,000 miles, resulting in approximately £5,250 in excess mileage charges. This financial burden is compounded by other changes, including the reduction of standard cars’ mileage allowance from 60,000 miles to 30,000 miles over a three-year lease.
In addition to the mileage allowance changes, advance payments for new leases are expected to rise by about £400 due to the introduction of VAT. Furthermore, the Insurance Premium Tax (IPT) will also be added to leases starting on the same date. These tax changes are part of a broader strategy by the UK government that Motability estimates will add approximately £300 million in annual costs to the scheme.
“Together, these tax changes mean it will cost significantly more to run the scheme,” Miller added, emphasizing the challenges that lie ahead for both the organization and its users. The Motability Scheme currently supports around 890,000 disabled individuals across the UK, making these changes particularly impactful.
As the implementation date approaches, many users are expressing concerns about how these changes will affect their ability to maintain independence and mobility. The reductions in mileage allowances and the introduction of additional costs could lead to difficult decisions for many who rely on these vehicles for essential travel.
Details remain unconfirmed regarding any potential adjustments or further clarifications from the government or Motability as the deadline approaches. However, the current trajectory suggests a challenging landscape for users of the Motability Scheme.
