Motability confirms 4 rules that are not changing in major revamp

The Motability Scheme will change in July, affecting how users drive their vehicles, but four rules will stay the same.

The changes are due to VAT and Insurance Premium Tax changes from July 1, 2026, which will increase costs, so the scheme must change to stay sustainable, affecting mileage costs, tyre replacements, and EU breakdown cover.

The Motability Scheme says it will still offer an all-inclusive package for confidence and peace of mind.

Some things will stay the same in the Motability Scheme:

The changes aim to protect customers and make the scheme sustainable.

People with current leases won't be affected by the changes, only new applications from July 1, 2026, will be affected.

Motability users in Scotland may be affected differently than those in England or Wales.

New rules will apply to people leasing cars after July 1, affecting mileage and breakdown protection.

Currently, users can drive 20,000 miles before being charged, but new rules will reduce this to 10,000 miles before charging 25p per mile.

For three-year leases, users will have 30,000 miles before being charged, and Wheelchair Accessible Vehicles will have 50,000 miles over five years.

Users will pay for extra miles driven over their allowance at the end of their lease.

People taking their Motability vehicle abroad will need a VE103 certificate, costing £22, to confirm permission.

The certificate lasts 12 months, covering all trips, and fewer than 1% of customers used breakdown cover abroad in 2025.

The rule changes only apply to new applications after July 1, 2026.

New applications will have a reduced number of tyres that can be replaced through the Scheme, with replacements still included as part of the lease.

Someone with a three-year lease can replace up to six tyres, with up to four for damage, and those with a five-year lease can replace up to 10 tyres, with six for damage.

This change reflects users' needs, as the average customer replaces only two tyres per lease, and reduced mileage allowances may also reduce the need for extra tyre replacements.

Andrew Miller, CEO of Motability Operations, said the scheme is about fixing and maintaining it for many years to come.

The CEO understands these changes are impactful for some users.

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