From 1 July 2026, a number of changes to the Motability Scheme will come into effect for new vehicle orders. These updates follow government announcements in the Autumn Budget and are in place to help maintain the long-term affordability of the Scheme.
For many people, especially those who rely on a Wheelchair Accessible Vehicle (WAV) for freedom and independence, these updates may raise questions.
In this guide, we explain what’s changing, what’s staying the same, and what it means if you’re considering a WAV through Motability.
What Is the Motability Scheme?
The Motability Scheme allows people who receive qualifying mobility benefits to lease a vehicle in exchange for their allowance. Such benefits include:
- Higher Rate Mobility Component of Disability Living Allowance (DLA)
- Enhanced Rate Mobility Component of Personal Independence Payment (PIP)
For wheelchair users, this can mean access to a Wheelchair Accessible Vehicle (WAV), with a package that includes insurance, servicing and maintenance, breakdown cover and adaptations.
This all-inclusive approach is one of the reasons the Scheme has remained so valuable for people’s mobility.
Why Are Changes Being Introduced in 2026?
From 1 July 2026, VAT and Insurance Premium Tax (IPT) will apply to most Motability leases. This significantly increases operating costs.
Motability has stated that, without changes, the average cost of a new lease would rise by around £1,100. Instead of passing this increase directly onto customers, a number of changes have been made to help balance affordability with sustainability.
What’s Changing from 1 July 2026?
These updates apply to new Motability orders only and not existing leases.
- Reduced Mileage Allowance. The new allowance is 10,000 miles per year, equivalent to 30,000 miles over a 3 year lease or 50,000 miles over a 5 year lease. If you travel long distances for healthcare, work, or family support, it’s worth reviewing your annual mileage.
- Increased Excess Mileage Charges. The new rate is 25p per mile (including VAT). This applies if you exceed your mileage allowance over the lease term.
- Tyre Replacement Limits Updated. For a 3 year lease, up to 6 tyres total which includes up to 4 replacements due to damage. For 5 year lease, up to 10 tyres total which includes up to 6 replacements due to damage. WAVs are often heavier and may experience more tyre wear, so understanding these limits is important when planning your lease.
- EU Travel Now Includes an Admin Fee. You’ll need to inform the RAC before travelling and an admin fee will apply for European breakdown cover.
What’s Not Changing?
It’s important to note the core benefits of the Motability Scheme will stay the same, namely insurance, servicing and maintenance, breakdown cover and an inclusive leasing structure.
For many people, particularly those with WAVs, this ongoing support remains a key part of the Scheme’s value.
A Note on Scotland
Customers receiving mobility allowances through Social Security Scotland are not currently affected by these changes. Discussions are ongoing under the Accessible Vehicle and Equipment Scheme (AVES), with further updates expected soon.
What This Means If You’re Considering a WAV
At GowringsVersa, we recognise that mobility isn’t a luxury, it’s essential. We know that any changes to the Motability Scheme can impact our customers. Our role is to support you with clear and practical guidance, so you can make informed decisions that work for you.
If you’re thinking about leasing a Wheelchair Accessible Vehicle through Motability, ordering before 1 July 2026 means your lease will be under the current terms.
When Can You Renew Your Motability Lease?
You can usually start the renewal process around 3 months before your lease ends. This gives you time to explore vehicle options and arrange demos, organise for any adaptations and avoid a gap between vehicles. For people with a Wheelchair Accessible Vehicle (WAV), this timeframe can be particularly important because conversions and handovers can sometimes take longer.
How GowringsVersa Mobility Can Help
We are experts in helping people find the right Wheelchair Accessible Vehicle (WAV). Our team of specialists can:
- Talk through the 2026 Motability changes
- Recommend WAV options tailored to your mobility requirements
- Support you through the full application and handover process
We’re here to make the process as straightforward as possible. If you’d like tailored advice or want to explore available WAV options, get in touch with GowringsVersa Mobility today.