From 1 July 2026, claimants on Personal Independence Payment (PIP) and Disability Living Allowance (DLA) using the Motability Scheme will experience changes to their mileage allowances and face a new excess mileage charge. The Motability Scheme, which provides eligible benefit recipients access to vehicles, is adjusting its mileage policies to manage rising costs and government tax changes.
Under the new rules, all new vehicle leases will come with a standard mileage allowance of 10,000 miles per year. For standard three-year leases, this amounts to a total allowance of 30,000 miles. Wheelchair Accessible Vehicles (WAVs), which are leased over five years, will have a total mileage limit of 50,000 miles.
If drivers exceed their mileage limit, they will incur an excess mileage charge of 25p per mile, inclusive of VAT. This charge will apply to all new orders placed on or after 1 July 2026. Existing leases remain unaffected, with current mileage allowances staying the same until their terms end.
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Motability has emphasized the importance of these changes in ensuring the long-term sustainability and affordability of the Scheme. Clare Ickringill, Chief Asset Risk Officer, explained that accurate mileage planning helps keep costs fair and manageable for all participants.
These adjustments aim to balance cost management with continued access to essential vehicles for disabled and mobility-impaired individuals relying on the Scheme.