What the new mileage allowance and excess mileage fees means for your lease
09 June 2026 | Scheme news
From 1 July 2026, new orders on the Motability Scheme include a mileage allowance of 30,000 miles for a three-year lease and 50,000 miles for a five-year Wheelchair Accessible Vehicle (WAVWheelchair Accessible Vehicle) lease. Excess mileage will be charged at 25p per mile including standard rate VAT.
If you get your allowance from Social Security Scotland, these changes will apply from 1 September 2026.
We’ve made these changes to help manage rising costs and protect the Scheme for the long term following tax changes announced by the UK Government. We know these changes will affect customers in different ways. For some, the new mileage allowance will be a big adjustment. We recognise the challenges this will bring and we’re sharing more information to help you understand what it means for you.
Why mileage is changing
Mileage is one of the biggest factors in the cost of running the Scheme. The more miles a vehicle does, the more it can affect maintenance, insurance and what the vehicle is worth at the end of the lease. This impacts how much we can sell the car for, and how much we can invest back into the Scheme.
When we know how many miles a vehicle is likely to travel, we can plan costs more accurately.
This matters because we had to make changes to the Scheme following tax changes from the UK Government. From 1 July 2026, most new Motability Scheme leases will include standard rate VAT on some lease payments. We’ve made changes to absorb most of these costs and protect the all-inclusive package we know our customers rely on.
In our latest price list, customers can choose from a range of vehicles, including more than 70 options with a no or low Advance Payment, including popular SUVs, MPVs and hatchbacks. For customers looking for a WAVWheelchair Accessible Vehicle, there are over 120 available with lower Advance Payments.
Watch the video below with our Chief Asset Risk Officer, Clare Ickringill, about why these changes to the Scheme are so important.
What happens if you drive more than the allowance
If you need, you can still drive more than your mileage allowance. If you go over, you’ll need pay for the extra miles at the end of your lease.
For orders placed on or after 1 July 2026, excess mileage will be 25p per mile including standard rate VAT.
If VAT relief applies to your lease, the charge will be 21p per mile. If you might be eligible, your dealer will ask you to complete a short Customer Eligibility Declaration (CED) when you order your vehicle to confirm that you normally use a wheelchair or stretcher and qualify for VAT relief.
If you need to pay an excess mileage charge, this covers the extra distance driven and the insurance for those extra miles.
You may be wondering how this compares with other car leases. Every lease is different, but it’s important to remember that a Scheme lease still includes more than the vehicle itself. Your lease still comes with insurance for up to three drivers, servicing and maintenance, breakdown cover, as well as support from our team.
If you need to travel much more than your standard mileage allowance because of healthcare, education or employment you may be able to get help with the cost of your extra miles. Read more on our support for customers with higher mileage needs.
How to work out if the new mileage allowance will be enough for you
The new allowance covers 30,000 miles over a three-year lease and 50,000 over a five-year WAVWheelchair Accessible Vehicle lease. 10,000 miles is the average you can drive each year of your lease, not a yearly limit.
If you’re concerned about this, a good place to start is by looking at how many miles you drive now. You could check your MOT history, look at the mileage on your vehicle, your car manufacturer's app, or think about your regular weekly journeys.
It’s important to check how much you drive each year so you know how this might affect you. The new allowance is likely to cover your usual driving. If you often drive more than this, you should consider how many more miles you may use and what this could cost at the end of your lease. If you're likely to exceed the allowance, understanding your mileage now can help you plan ahead and avoid unexpected costs at the end of your lease. Exceeding your agreed mileage allowance will result in additional charges at the end of your lease.
If you already know you'll need to travel more for healthcare, education or employment than your mileage allowance covers, contact us before you order your vehicle. Talking to us before your lease starts means we can explain what support may be available and help you decide if the Scheme is right for you.
What this means if you have a current lease
Nothing changes for your current lease. Your mileage allowance will stay the same. These changes only apply to new orders placed on or after 1 July 2026.
If you get your allowance from Social Security Scotland, mileage changes will only apply to new orders placed on or after 1 September 2026.
Stay up to date
To get the latest on the Scheme changes, visit our Change Page.
This page covers the changes to the Scheme following the tax changes announced by the UK Government in the 2025 Autumn Budget, and what they mean for you.
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