Motability Scheme Update: DWP Addresses Concerns Over Reduced Mileage Allowance

Sir Stephen Timms, Minister of State for Social Security and Disability, said that a quarter of Motability users would be affected by the change (Image: Parliament TV). The Department for Work and Pensions has responded after Motability reduced the number of miles allowed under its scheme. The charity has halved the annual mileage limit before excess charges apply.

Motability Scheme Update
Motability Scheme Update

Motorists will now be allowed to travel 10,000 miles per year before being charged 25p per mile beyond the limit. Earlier, the allowance was 20,000 miles with a 5p per mile excess charge.

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Plaid Cymru MP Liz Saville Roberts asked the Secretary of State for Work and Pensions, Pat McFadden, what assessment had been made regarding the impact of this reduction on disabled people in rural areas under the Mobility scheme from 1 July 2026.

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Motability Scheme Update
Motability Scheme Update

Sir Stephen Timms stated that it is believed around 25% of Motability users will be negatively affected. He explained that responsibility for the scheme’s terms lies with the Motability Foundation and its Board of Governors.

He added that the changes, announced on 26 March, include reducing mileage from 20,000 to 10,000 per year. These changes apply only to new leases, while existing users are not affected. According to the Foundation, around 75% of users already drive below the new limit, though some users will be impacted and mitigation options are being reviewed.

This week, Motability introduced new technology for new drivers and those under 30 on a lease. Drivers must install a black box device and use a mobile app. The system monitors driving behaviour such as speed and braking, giving weekly ratings of green, amber, or red.

 Reduced Mileage Allowance
Reduced Mileage Allowance

Drivers receiving four red ratings within 12 months may be removed from the scheme. A pilot in Northern Ireland previously resulted in 300 removals. Two consecutive red weeks can also lead to losing the vehicle.

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Motability guidance states that unsafe driving despite warnings can lead to removal after repeated red scores over time.

The organisation also confirmed it will track data such as speed, location, journey duration, braking patterns, phone usage, and GPS data.

However, Motability clarified that there are no limits on the number of journeys and that high usage alone will not affect leases unless linked to unsafe driving behaviour.

A spokesperson said the scheme aims to support disabled mobility while encouraging safer driving through telemetry-based feedback rather than penalties.

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