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The Independent UK
The Independent UK
National
Henry Saker-Clark

Motability mileage allowance changes explained after government tax increases

Motability
  • Disabled people using the Motability car leasing scheme are set to face increased costs to offset £300 million in new taxes introduced in last year's budget.
  • Motability Operations is implementing changes including reduced annual mileage allowances, higher excess mileage fees, and new charges for taking vehicles abroad.
  • Users could also experience an average increase of £300 to £400 in advance payments for new leases taken after 1 July.
  • The scheme has faced political scrutiny, with the Chancellor announcing an end to 'luxury cars' and the introduction of VAT and insurance premium tax on leases from July 2026.
  • Motability CEO Andrew Miller stated these measures are necessary to mitigate the tax impact and prevent an average £1,100 increase per lease for customers.

IN FULL

Disabled Motability scheme users face new charges after Government tax hikes

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