DWP issues Motability update over ‘mileage charges’ as it faces 2 questions

The Department for Work and Pensions has been forced into issuing an update as questions mount over changes to the rules for Motability. The scheme - which allows some DWP disability benefits to be exchanged for a vehicle lease - has recently been reformed. In July, it was announced that for people ordering a new vehicle, the standard mileage allowance would be reduced. The Motability Scheme said the changes were necessary to tackle rising costs and UK government tax changes introduced by Rachel Reeves that Motability said would have added around £1,100 to the cost of each lease.

But the reforms were criticised by some campaigners. They meant that the yearly mileage allowance was cut from 20,000 miles to 10,000 miles - a step the Countryside Alliance said would leave many rural members of the scheme "disproportionately affected". Tens of thousands of people also signed a parliamentary petition to call for the changes to be halted . Now the DWP is facing fresh questions on the changes amid concerns over the impact they are having on ordinary people.

Liz Saville Roberts, a Plaid Cymru MP in Wales, asked two important questions. First up, she wanted to know what steps the DWP was taking to “ensure that Motability customers with high essential mileage requirements are not disproportionately disadvantaged by additional mileage charges.” Secondly, she asked what discussions the DWP “has had with Motability on the potential impact of reduced mileage allowances on disabled people living in rural areas.”

The DWP has now replied. Sir Stephen Timms, a DWP minister, responded to both questions with the same reply, parliamentary records show. He said: “Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors. Department officials and Motability meet regularly to review the Scheme and how it operates to ensure it meets the needs of disabled people. “After careful consideration of customer's needs, Motability announced that from 1 July 2026, customers who need significantly more travel than the standard mileage allowance for essential healthcare, education or employment journeys may be eligible for additional mileage support.

"Customers must demonstrate they require more than 3,000 miles a year for these purposes, with support applied to approved miles above that threshold through reduced excess mileage charges, while leisure and holiday travel is excluded. Support can be requested when ordering a vehicle or during a lease, with eligibility assessed based on individual circumstances and supporting evidence." He added: “Additionally, the Scheme recognises that living in the most rural areas often means having to travel further to access everyday services so will provide 3,000 additional miles per year on to leases for certain customers.

Motability Operations has used data from national Governments to identify the areas with limited access to essential services. The data looks at the typical travel time to services that people regularly rely on, including grocery shopping, healthcare and education. “The Motability Scheme is operated independently of Government. Decisions about grants, eligibility, lease terms, mileage allowances and support arrangements are matters for Motability.”

The Motability Foundation website says that the charity began in 1977 . The programme - which is largely self-funding - was set up to help disabled people pay for their own transport. Until then, they were very often housebound. In 1978, ten people received the keys to their own cars. Today, around 915,000 people use Motability, figures show . To find out how to apply for Motability support, and to see eligibility requirements, visit the organisation’s website here .