New Motability Scheme rules will come into force on September 1, 2026, changing lease terms for some Personal Independence Payment (PIP) and Disability Living Allowance (DLA) customers in Scotland while protecting existing agreements.
The changes apply to new Motability orders placed from the start of September and include lower mileage allowances, revised tyre replacement terms and new charges linked to certain services. Around 70,000 customers across Scotland will keep their current lease terms if they recently placed an order or place one before the deadline.
New Lease Terms Apply To Future Motability Orders
According to Birmingham Live, the updated rules will affect customers who enter new leases from September 1, 2026. Existing leases will not be changed.
For new three-year leases, customers will receive a mileage allowance of 30,000 miles, up to six tyre replacements including up to four replacements for damage, and a 25p excess mileage fee including standard rate VAT. A £22 VE103 administration fee will also apply for taking vehicles abroad to the EU.
For five-year Wheelchair Accessible Vehicle (WAV) leases, the allowance will be 50,000 miles, with up to 10 tyre replacements including up to six for damage. The excess mileage fee will also be 25p, with VAT conditions depending on eligibility.
Government Says Changes Aim To Reduce Costs
The Department for Work and Pensions (DWP) said the changes are part of efforts to reduce public spending while maintaining support for disabled people.
Work and Pensions Secretary Pat McFadden MP said the changes “are driven by the fairness that underpins this Government – fairness for the taxpayer, fairness for disabled people, and fairness for the country.”
The Labour Party cabinet minister said:
“We’re saving £1 billion of taxpayer money by removing VAT relief from some new Motability leases, whilst ensuring the scheme still supports disabled people’s mobility and independence.”
Mr McFadden added: “We’re building a fair welfare system and an economy that works for everyone.”
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Motability Customers Receive Mileage Warning
Motability Operations said customers with existing leases would not face changes to their current agreements.
The organisation said: “The changes do not affect existing leases. We know the new mileage allowance will be one of the biggest adjustments.”
It added:
“If you need to travel much more than your standard mileage allowance because of these journeys, you may be able to get help with the cost of your extra miles.”
The new rules mean customers starting a lease after September 1 will need to consider their expected driving needs before choosing a vehicle under the updated scheme.
The new Motability lease terms begin for orders placed on or after September 1, 2026.
