From 1 July 2026, claimants on the Motability Scheme receiving Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will be subject to a new 25p per mile charge for excess mileage. The change, announced by the Department for Work and Pensions (DWP) and implemented through Motability Operations, introduces a mileage allowance designed to cover everyday journeys, with additional travel incurring a fee that includes VAT.
Motability officials explained that while the standard mileage allowance should meet most customers’ day-to-day travel requirements, some individuals—particularly those traveling for healthcare, education, or employment—may exceed this limit. To support these cases, Motability is developing a fair and consistent process to assess requests for additional mileage assistance. This support will not be automatic and will depend on the individual’s travel needs and supporting documentation. Full details on how to apply for this support will be published on 8 July 2026.
Majid Ismailzada, Director at GM Direct Hire, warned that this new charge could add unexpected costs for disabled motorists, particularly during the costly summer period when families face higher fuel expenses and holiday preparations. He advised customers to carefully review how the changes affect their specific circumstances and noted that Wheelchair Accessible Vehicles remain exempt from the VAT addition.
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Motability encourages anyone considering ordering a vehicle through the Scheme, especially those anticipating higher travel needs, to wait until the full guidance is released in July. Customers with leases ending before this date should contact Motability directly to discuss their options. Early communication will allow the Scheme to better assess individual circumstances and offer appropriate support or advice on whether the Motability Scheme remains the best fit for their travel needs.