Motability Leases and Mileage Changes
From July 1, 2026, disabled people using the Motability car leasing scheme will face higher costs. New mileage limits, tyre rules, travel charges, and updated vehicle prices come into effect. Customers taking new leases after this date will see an average increase in advance payments of between £300 and £400.
The annual mileage allowance for new customers will fall to 10,000 miles per year, equivalent to 30,000 miles over a standard three-year lease. Customers with a five-year Wheelchair Accessible Vehicle (WAV) lease will receive a 50,000-mile allowance. Drivers who exceed the limit will pay 25p per mile, including VAT, although Motability stated that customers with exceptional circumstances may be eligible for additional support.
Tyre Replacement Limits
New fair use limits will also apply to tyre replacements. Three-year leases will include up to six replacement tyres, including a maximum of four damaged tyres. Five-year WAV leases will include up to 10 replacement tyres, with up to six for damage.
Travel Costs and VAT Changes
Customers travelling to Europe will need to obtain a VE103 certificate through the RAC before leaving the UK and pay a new £22 administration fee. Motability said fewer than one per cent of customers used breakdown cover abroad during 2025.
Under the new VAT rules, VAT will only apply to advance payments made for more expensive Motability vehicles, while the part of the lease paid for through a customer’s qualifying disability benefit will remain free from VAT. Andrew Miller, CEO of Motability, said the service had taken "careful steps" to ensure the Scheme remains affordable and sustainable for the people who need it.
MOT Test Fee Increases
The DVSA has confirmed that new maximum service charges will be introduced from July 6, 2026, following a consultation last year. The maximum service charge will rise to £70 for HGVs (up from £55), £50 for trailers (up from £40), and £90 for buses and coaches (up from £70).
Tachograph Requirements for International Journeys
From July 1, 2026, goods vehicles over 2.5 tonnes used for international journeys for hire and reward must have a full smart 2 tachograph fitted. If the international journey is for the driver or the company's own account and driving does not constitute the main activity of the driver, there is no requirement to fit a tachograph.
