Motability users are facing a range of changes that could affect how they can use their vehicles
The Motability Scheme is set to introduce substantial changes this July which could potentially impact how users operate their vehicles. However, four key provisions will remain unchanged during the overhaul.
The rule modifications have been prompted by a VAT and Insurance Premium Tax adjustment that will be implemented for new leases from 1 July 2026. To offset the additional costs this will place on the scheme, the organisation stated it must introduce significant alterations to “keep the scheme sustainable”. This will impact mileage charges, tyre replacements and EU breakdown cover.
The Motability Scheme has confirmed which provisions won’t be affected by the July restructure, stating: “We stay committed to offering an all-inclusive package that gives you confidence and peace of mind.”
Things that will remain part of the Motability Scheme:
- Insurance for up to three drivers
- Servicing and maintenance
- Breakdown cover
- Dedicated support from our team
People who currently hold a lease with the Motability Scheme will also remain unaffected by the rule modifications. The changes will only be applicable to new applications submitted on or after 1 July 2026.
Motability users who receive their allowance from Social Security Scotland may also experience different impacts compared to users in England or Wales.
People leasing vehicles after 1 July will encounter new provisions regarding their driving limits and the protection available in the event of breakdowns.
Mileage
Currently, Motability users can accumulate 20,000 miles before an excess charge of 5p per mile is applied. The updated regulations will cut this to an average yearly mileage allowance of 10,000 before incurring a charge of 25p per mile including standard rate VAT.
For those on a three-year lease, this means they will have 30,000 miles before the charge is triggered, while Wheelchair Accessible Vehicles will receive a total allowance of 50,000 miles across their five-year lease.
Customers will be required to pay for any additional miles driven beyond their allowance at the conclusion of their lease.
Overseas travel and breakdown
Those travelling abroad with their Motability vehicle will now require a VE103 certificate prior to heading overseas, confirming permission to take the vehicle outside of the UK.
The certificate will set customers back £22 for new orders placed on or after 1 July and remains valid for 12 months, covering all trips within that period.
Motability also highlighted that fewer than 1% of customers made use of breakdown cover abroad in 2025.
Tyre replacement
Those placing orders on or after 1 July will find that the number of tyres that can be replaced through the Scheme has been reduced. The official guidance states: “Tyre replacement is still included as part of your lease, as long as it’s within fair use.”
Under the revised rules, a customer on a three-year lease will be entitled to replace up to six tyres, with up to four of these permitted for damage-related replacements. Those with a five-year lease will be entitled to replace up to 10 tyres, six of which can be for damage.
This amendment is designed to reflect users’ requirements, as the typical Motability customer replaces just two tyres per lease during a three-year period. The decreased mileage allowances may also potentially lessen the need for additional tyre replacements.
Andrew Miller, CEO of Motability Operations, said: “The scheme is not just about fixing the here and now, it’s about fixing and maintaining us for many, many years to come.
“We totally understand and recognise these are quite impactful changes for some of you.”

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