The revised arrangements also introduce a separate process for customers whose healthcare, education or employment journeys require significantly more mileage than the standard allowance. According to Motability, this support is available only where there is clear evidence of higher essential travel needs.
The Motability Scheme has introduced new mileage rules for leases beginning after 1 July 2026, alongside additional support aimed at customers with the greatest travel requirements. The changes follow an overhaul of the annual mileage allowance and the introduction of a revised excess mileage charging structure.
According to Motability, the standard mileage allowance is intended to cover everyday journeys for most customers, with three out of four already driving below the new annual limit. The organisation said the changes were introduced because the scheme has become more expensive to operate following tax changes announced in the UK Government’s Autumn Budget, together with other rising costs.
Rural Customers Will Receive Additional Mileage Automatically
One of the key changes is the introduction of up to 3,000 additional miles each year for certain customers living in the most rural parts of the UK. The extra allowance is intended to reflect the longer distances some people must travel to reach essential services such as healthcare, education and grocery shopping.
According to Motability, eligibility is determined using national government data on rural isolation. The framework assesses the typical travel time from individual postcodes to essential services, allowing the scheme to identify customers whose location creates higher transport demands.
The organisation said it will check customers’ postcodes and contact those who qualify by letter or email. It has also asked customers not to contact the scheme to ask whether they are eligible, explaining that all qualifying postcodes are identified through its assessment process.
The approach was also discussed in Parliament after questions were raised about whether eligibility could be widened. According to the Department for Work and Pensions, Minister Sir Stephen Timms said the Motability Foundation is independently responsible for administering the scheme, while Motability Operations will write directly to customers whose postcodes meet the rural eligibility criteria.
Separate Support Available for Higher Essential Travel Needs
Alongside the rural allowance, Motability has introduced a process for customers whose travel for healthcare, education or employment is expected to exceed the standard mileage allowance.
According to the scheme’s published guidance, only journeys that directly benefit the recipient of the eligible mobility allowance will be considered. These include travel to hospital and GP appointments, specialist treatment, education or training, taking children to school, and journeys to and from work. Leisure and holiday travel are excluded from the assessment.
Motability states that customers must demonstrate they need more than 3,000 miles each year for these essential journeys before additional support can be considered. Where a request is approved, support is calculated according to the number of qualifying miles above that threshold.
The guidance explains that approved additional miles of up to 5,000 each year reduce the excess mileage charge to 10 pence per mile, including VAT. For approved mileage above 5,000 miles, the excess mileage charge is reduced to zero for those additional miles.
Customers on the new lease terms may request support whenever their circumstances change during their lease, while customers who entered the scheme before the revised rules will generally need to wait until the final three months of their current lease before applying. According to Motability, each request will be assessed individually based on the customer’s circumstances and supporting information where required.
