What observers say
“If we did nothing, the average cost of a new lease would increase by around £1,100,” stated Andrew Miller, highlighting the urgency of the situation as changes to the motability mileage allowance loom. Starting July 1, 2026, the mileage allowance for Wheelchair Accessible Vehicles (WAV) will be slashed from 100,000 miles to just 50,000 miles over a five-year lease.
This drastic reduction means that WAV customers who drive more than the new limit will face significant financial penalties. For instance, a customer driving 75,000 miles during their lease will exceed the new limit by 25,000 miles, resulting in an excess mileage charge of approximately £5,250, calculated at 21p per mile.
In addition to the changes for WAVs, standard cars will see their mileage allowance reduced from 60,000 miles to 30,000 miles over a three-year lease. This reduction is part of a broader strategy influenced by the UK Government’s decision to apply VAT and Insurance Premium Tax (IPT) to the Motability Scheme, which is expected to add around £300 million in annual costs.
Moreover, the introduction of VAT is anticipated to increase advance payments for new leases by about £400. The average cost of leasing a vehicle under the Motability Scheme, which serves approximately 890,000 disabled individuals across the UK, will rise significantly due to these changes.
“Together, these tax changes mean it will cost significantly more to run the scheme,” Miller added, emphasizing the financial strain these adjustments will impose on users. The new average mileage allowance for WAVs translates to just 10,000 miles per year, a figure that many users may find insufficient given their mobility needs.
As the implementation date approaches, users and advocates are voicing concerns about the impact of these changes on their ability to access essential services and maintain independence. The Motability Scheme has long been a lifeline for disabled individuals, and these adjustments threaten to undermine that support.
Details remain unconfirmed regarding any potential responses from advocacy groups or the government to mitigate the impact of these changes. However, the urgency of the situation calls for immediate attention and action to ensure that the needs of disabled users are adequately addressed.