has given an update ahead of a significant rule change due later this year. From July 1, those with new leases will only be permitted to drive 10,000 miles annually before incurring a 25p-per-mile surcharge.
Previously, the limit stood at 20,000 miles, with a 5p-per-mile charge thereafter. Customers will be required to settle any excess mileage costs at the conclusion of their lease. Motability attributed the changes to 'Government tax changes' which had 'pushed up the cost of running the Motability scheme'.
It further stated that if it 'did nothing, it would make leases on average around £1,100 more expensive'. Vehicles will be fitted with telematics technology — a black box — to track drivers' journeys.
These black boxes will keep tabs on driving behaviour, including speed and braking, and will generate a weekly rating. Accumulating more than four red ratings within 12 months could result in drivers being removed from the Motability scheme, which enables eligible disabled individuals to lease a new vehicle using a portion of their benefit payments.
There are, however, several exemptions to these changes, which Motability outlined following a customer enquiry. In reply to a post on its Instagram page, one customer asked: "What about existing customers over 30? Will I need a tracking device fitted to my next lease?"
Motability replied: "Thanks for reaching out. As you're over 30 and not a New-to-Scheme customer, you won't need it, unless you have an excessive claims history."
The details According to the Motability website: "Leases will have an average yearly mileage allowance of 10,000 miles a year. This will be a total allowance of 30,000 miles for a three-year lease. Wheelchair Accessible Vehicles (WAVWheelchair Accessible Vehicles) will have a total allowance of 50,000 miles over five years.
"You'll pay for any miles you do above your allowance at the end of your lease. Excess mileage will be 25p per mile including standard rate VAT."
The details
On its website, Motability says: "Leases will have an average yearly mileage allowance of 10,000 miles a year. This will be a total allowance of 30,000 miles for a three-year lease. Wheelchair Accessible Vehicles (WAVWheelchair Accessible Vehicles) will have a total allowance of 50,000 miles over five years.
"You’ll pay for any miles you do above your allowance at the end of your lease. Excess mileage will be 25p per mile including standard rate VAT."
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What this means for you
If you already have a lease, nothing changes right now.
- Your mileage allowance will not change on your current lease
- These changes only apply to new orders placed on or after 1 July 2026
Why mileage matters
Mileage is one of the biggest factors in the cost of running the Scheme. When we know how many miles a vehicle will travel, we can plan costs more accurately.
Our aim is to:
- Keep the Scheme affordable
- Make sure support is fair for all customers
- Protect the Scheme for years to come
The site adds: "If you need to drive more than the allowance, you can pay for extra mileage. For orders placed on or after 1 July 2026, excess mileage will be charged at 25p per mile including standard rate VAT, or 21p per mile if your lease benefits from VAT concessions.
"This cost covers the additional distance driven, and insurance for those extra miles. We understand that, in some circumstances, you may need to drive more than the mileage allowance included in your lease. We will be introducing an exceptions process for very limited situations and will share an update before July 1."
Chief asset risk officer Clare Ickringill stated: "Government tax changes have pushed up the cost of running the Motability scheme. If we did nothing, it would make leases on average around £1,100 more expensive. We didn't want to cut the core package we know you rely on, including insurance, servicing, maintenance and breakdown cover. So we looked for a way to evolve the scheme that impacts as few people as possible.
"So how does lower mileage help? If we know how many miles a car will drive, we can plan costs more accurately from the start. A car that's driven fewer miles will keep more of its value when it's at the end of its lease, and it's less likely to have an accident. This helps lower our insurance costs. On top of that, cars that have lower mileage are also less likely to break down or need repairs. Most leasing companies use mileage limits for this reason, so that drivers can pay for what they use.
"So what's changing? From the 1st of July 2026, new leases will include 10,000 miles a year instead of 20,000. Three quarters of all our customers already drive under 10,000 miles, so won't be affected.
"What does the additional mileage cost cover? If you do need to drive more, you can pay more for the extra miles. The additional cost per mile will cover not just the extra distance, but also the extra insurance needed for those miles. With us, everything is included in this cost.
"The bottom line: this change is to offset rising costs and make sure we keep the scheme sustainable and affordable for as many people as possible, while protecting your all-inclusive package. Because we know it's more than just a car, it's your independence."