What's Going On with the Motability Scheme?

If you are a Motability customer or considering joining the scheme, we urge you to read this article fully to understand how it will affect you. Please also complete the poll at the end of the article.

The Motability Scheme has undergone a series of changes over the past two years that are reshaping how it works for disabled people across the UK.  While the scheme continues to provide valuable independence for many, it is undoubtedly becoming more structured but with higher costs and less flexibility than before.

The last twelve months has seen an increase in insurance excess costs, tighter rules around lease extensions and the withdrawal of several premium vehicle brands.  We previously shared information about these in our monthly newsletters.  Most recently, there has also been the introduction of “Drive Smart” monitoring, initially for under-30s and now extended to all new customers who joined the scheme after mid-April 2026.

With even more updates coming into effect from July 2026, now is a good time to familiarise yourself with what is happening and consider whether the scheme still fits your needs and personal circumstances.

What Is Changing?

There will be several changes ahead which will have a more direct impact on day-to-day use and affordability.

1. Higher Overall Costs

New taxes on Advance Payments and insurance are expected to increase the upfront and ongoing cost of leasing a vehicle.  Exact amounts will vary depending on the particular vehicle you select but many customers are likely to feel the difference. 

What to consider:  Think about whether your budget can absorb higher upfront payments.  You can also take a look on the Motability website to look for cars with lower Advance Payments that still meet your needs.

2. Reduced Mileage Allowance

The mileage limit will halve, going from 20,000 to 10,000 miles per year.  This is equivalent to 27 miles per day.  Motability says that three out of four customers will fall within this limit but it could be restrictive for others, particularly if you rely on your vehicle for work, medical appointments, or caring responsibilities.

What to consider:  You should review how many miles do you currently use each year and think about whether this new limit affects your independence or routine.

3. Increased Excess Mileage Charges

If you exceed the new mileage limit, the cost will be 25p per mile.  This is a sharp increase from the previous cost of 5p per mile and means that even moderate overuse could lead to significant additional costs at the end of your lease.

What to consider:  Consider whether your travel needs are consistent or if they vary year to year.  Would unexpected journeys, such as dealing with changeable or unexpected health needs for example, push you over the limit?

4. Changes to Maintenance Policies

There will be more restrictions placed on tyre replacement policies so it may mean that fewer replacements are covered as standard.  You may not think that this could cause a problem but unexpected punctures or scrapes to a tyre wall can take anyone by surprise. 

What to consider:  You may need to think about budgeting for potential maintenance costs.  Consider whether your choice of vehicle or how you use it may affect this. 

5. Charges for Travelling Abroad

New administrative fees will apply if you plan to take your Motability vehicle outside the UK.

What to consider:  This is one to think about if you regularly travel abroad with your car since these additional costs could affect your plans.

More information about these changes is available on the Motability website.

The Motability Scheme remains a convenient way to have access to a vehicle for many disabled people and benefits such as insurance, servicing, and breakdown cover, together with having access to adapted vehicles is still incredibly valuable.  However, having less flexibility means that the scheme may not suit everyone in the same way it once did.  When considering whether it is right for you, it is worth considering whether the benefits outweigh the restrictions or whether these changes will have a detrimental effect on how you live your life. 

Sign the Petition

Across the disabled community, many people are expressing real concern about what these updates could mean in practice.  For some, the reduction in flexibility and rising costs are a barrier to people accessing a vital lifeline that enables independence and access to employment, healthcare and social interaction.

Many groups and individuals have voiced worries that these changes could disproportionately affect those with more complex needs or less predictable travel patterns.  This growing dissatisfaction has also begun to attract wider media attention and recent coverage highlights concerns that the scheme is shifting away from its original purpose of supporting independence.

There is an online petition currently underway, calling for changes to be stopped and greater consideration of their impact on disabled people.  If you feel concerned about the changes outlined above, you may wish to consider adding your voice.  You can sign the petition here.

It is important to hear a range of perspectives so here are some articles from other sources to help you form your own view:

Disability News Service

Motaclarity

iNews

Disabled People Against Cuts

To be clear, we are not saying that the scheme is no longer worthwhile.  We are just encouraging you to take a fresh look so that you can make an informed decision that will support your lifestyle rather than restrict it.

Exploring Alternatives

If you are not sure whether Motability is still the best fit for you, it may be helpful to explore some other options.  These could include purchasing a used vehicle independently, leasing privately or turning to other transport options such as public or community transport, or taxis.  Each option has its pros and cons and you will need to weigh up reliability, accessibility, and long-term cost to work out what is best for your individual needs.

Whichever route you consider, planning ahead is essential.  If your current lease is due to end soon or you are considering joining the scheme, it would be wise to review your needs and usage as well as comparing vehicle options and costs. 

Tell Us What You Think

What are your concerns about the changes to the Motability scheme?

• I may not be able to afford a Motability vehicle
• The mileage allowance will not be enough for my needs
• I am worried about the "Drive Smart" monitoring
• I feel like the new rules will restrict my life

See All Options

You can vote for more than one answer.