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Motability Scheme change to 'reflect user's real needs'
Reach Daily Express | April 30, 2026 11:39 AM CST

The Motability Scheme is set to introduce several changes in July that will affect all new users and their vehicles. One particular update is designed to better reflect the needs of users and their historical vehicle usage patterns.

The Motability Scheme enables those claiming mobility benefits to use this payment to lease a vehicle, including new cars, wheelchair accessible vehicles, and scooters. The lease agreement typically covers additional costs associated with the vehicles, such as servicing, breakdown cover, and tyre replacements.

The regulations surrounding tyre replacements are changing on July 1, affecting everyone who places a new lease order after this date. Official guidance confirms that tyre replacement will remain covered as part of the lease, but only if it falls "within fair use".

Under the revised rules, those with a three-year lease will be entitled to replace up to six tyres, with up to four of these permitted for damage-related reasons. Those holding a five-year lease will be able to replace up to 10 tyres, six of which can be for damage.

According to the RAC, front tyres should last approximately 20,000 miles before requiring replacement, while rear tyres can manage double that distance when the vehicle is driven safely.

Customers who find themselves reaching the limit of their tyre replacements will be guided through their available options. The Scheme added: "We'll always focus on helping you stay mobile, and we'll make sure you understand any costs before you decide."

The organisation stated this alteration is intended to better reflect actual vehicle usage patterns: "We'll refresh our fair usage policy based on how tyres are being used today.

"On average, customers replace two tyres or fewer over a three-year lease. The new limits are designed to cover what most people need.

"We're also reducing the number of miles included in the lease. So it makes sense to update tyre replacement at the same time."

Currently, Motability users can drive up to 20,000 miles before incurring an excess charge of 5p per mile. The updated rules will lower this to an average annual mileage allowance of 10,000 before being charged 25p per mile including standard rate VAT.

This means users on a three-year lease will have a total allowance of 30,000 miles before charges apply, while those on a five-year lease with Wheelchair Accessible Vehicles will have a total allowance of 50,000. Users will be required to pay for any extra miles driven beyond their allowance at the conclusion of their lease.

Many of the Motability changes have been prompted by a VAT and Insurance Premium Tax adjustment that will affect new leases from July 1, 2026. To offset the increased costs this will place on the scheme, the organisation stated it must implement significant changes to "keep the scheme sustainable".

People who currently hold a lease with the Motability Scheme will not be impacted by the rule changes. The updates will only apply to new applications submitted on or after July 1, 2026.


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