Overview
- The change will apply only to new leases starting on 1 July 2026 and halves the approved annual mileage from 20,000 to 10,000 miles.
- Drivers who exceed the 10,000-mile limit will face a 25p charge for each additional mile under the new contract terms.
- Motability has also introduced fair-usage tyre limits for leases starting 1 July that cap replacements for standard three-year contracts and longer wheelchair-accessible vehicle contracts.
- Motability and the Motability Foundation say roughly 75% of customers already drive 10,000 miles or less and will therefore be unaffected, while the organisation warns the changes avoid an average lease rise of about £1,100 caused by new taxes and costs.
- The Department for Work and Pensions confirmed responsibility for scheme terms sits with the Motability Foundation and said it meets the foundation quarterly; Motability has promised an exceptions process but has not published the detailed criteria.