Motability Mileage Allowance Changes Announced for 2026
“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 facing users as significant changes loom on the horizon.
Starting July 1, 2026, the mileage allowance for Wheelchair Accessible Vehicles (WAV) will be halved from 100,000 miles to 50,000 miles over a five-year lease. This reduction is expected to create challenges for many WAV users, particularly those who rely on their vehicles for daily transportation.
Under the new allowance, a typical WAV customer driving 75,000 miles over the five-year lease would exceed the new limit by 25,000 miles. This would result in excess mileage charges estimated at around £5,250, calculated at 21p per mile for any distance over the limit. With the average mileage per year for WAVs now set at just 10,000 miles, many users may find themselves facing unexpected financial burdens.
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 shift is part of a broader strategy to manage costs associated with the Motability Scheme, which serves approximately 890,000 disabled individuals across the UK.
Further complicating the situation, advance payments for new leases are expected to rise by about £400 due to the introduction of VAT and Insurance Premium Tax (IPT). These tax changes are anticipated to add approximately £300 million in annual costs to the scheme, significantly impacting the financial landscape for users.
“Together, these tax changes mean it will cost significantly more to run the scheme,” Miller added, emphasizing the compounded effects of the new policies on users’ budgets.
As the implementation date approaches, many users are left grappling with the implications of these changes. The Motability Scheme’s adjustments reflect a response to rising operational costs, but they also raise concerns about accessibility and affordability for disabled individuals who depend on these vehicles.
What observers say
Details remain unconfirmed regarding any potential measures that may be introduced to mitigate the impact of these changes on users. As the July 2026 deadline approaches, stakeholders and advocates for disabled individuals are closely monitoring the situation, hoping for solutions that will ease the financial strain on those who rely on the Motability Scheme.