“If we did nothing, the average cost of a new lease would increase by around £1,100,” said Andrew Miller, a spokesperson for the Motability Scheme. This statement underscores the significant changes set to take effect on July 1, 2026, as the motability mileage allowance undergoes a substantial reduction.
For Wheelchair Accessible Vehicles (WAV), the mileage allowance will drop from 100,000 miles to 50,000 miles over a five-year lease. This change is particularly concerning for WAV users who rely on their vehicles for daily transportation. With the new allowance, a customer driving 75,000 miles over the lease period would exceed the limit by 25,000 miles, resulting in an excess mileage charge of approximately £5,250.
Standard cars will also see a reduction in their mileage allowance, decreasing from 60,000 miles to 30,000 miles over a three-year lease. This shift reflects the broader impact of the UK Government’s decision to apply VAT and Insurance Premium Tax (IPT) to the Motability Scheme, which is expected to add around £300 million in annual costs.
In addition to the mileage reductions, advance payments for new leases are anticipated to rise by about £400 due to the introduction of VAT. This increase, coupled with the new IPT, means that the overall cost of running the scheme will rise significantly. Miller further noted, “Together, these tax changes mean it will cost significantly more to run the scheme.”
The Motability Scheme serves approximately 890,000 disabled individuals across the UK, providing essential mobility solutions. As these changes loom, many users are left grappling with the implications for their daily lives and transportation needs.
Currently, the average mileage for WAVs under the new allowance will be around 10,000 miles per year. However, for those who rely on their vehicles for work or other essential travel, this may not be sufficient. The excess mileage charge of 21p per mile could become a significant financial burden for many.
As the implementation date approaches, community members and advocacy groups are voicing their concerns about the impact of these changes on disabled individuals. Many are calling for a reassessment of the new allowances to ensure that they meet the needs of users effectively.
Details remain unconfirmed regarding any potential adjustments to these policies before their implementation. However, the conversation surrounding the motability mileage allowance is likely to continue as stakeholders seek to address the challenges posed by these changes.
