Changes Coming to the Motability Scheme in July 2026
Across the Greenhous Group, we are proud to offer vehicles from nine brands who all offer vehicles from Motability. From the 1st July 2026, there will be changes coming to the Motability Scheme that may affect you as a service user.
As a result of tax changes announced by the UK Government in Autumn 2025, the Motability Scheme have had to make some amendments to their leasing service. Below is a breakdown of the key changes taking place from the 1st July 2026, and some frequently asked questions, so you can stay informed and up to date on your Motability vehicle conditions.
What is changing?
Orders placed on or after 1st July 2026 will now include the following conditions:
Mileage Allowance
The standard mileage allowance will now be reduced to 10,000 miles per year, totalling 30,000 miles over a typical three-year lease. Wheelchair Accessible Vehicles (WAVs) will have an allowance of 50,000 miles over their five-year lease.
Excess Mileage Fees
The excess mileage fee will be increased to 25p per mile, inclusive of standard rate VAT.
Tyre Replacement
Over your three-year lease you can replace up to six tyres, with up to four of these included because of damage during your lease. If you have a five-year WAV lease, you can replace up to ten tyres, with six included for damage.
EU Breakdown
You will now need to pay an admin fee and let the RAC know if you travel to the EU during your lease period.
Why have these changes been introduced?
The UK Motability Scheme has made these changes to help manage the rising cost of running the Scheme. The Autumn 2025 Budget introduces Insurance Premium Tax to the Scheme, increasing running costs and creating potential for the average new lease cost to increase by around £1,100. To avoid passing these increased costs on to customers, the Motability Scheme introduced changes to reduce this cost impact, without affecting Motability customers’ outgoings.
What is not changing?
Your lease will continue to include insurance, servicing, maintenance and breakdown cover as usual. These features are key to the all-inclusive package that you expect from the Motability Scheme, so being able to keep these elements of the service without affecting costs was crucial to the decision process.
If you’re looking for a Motability vehicle, whether you’re looking now or after these changes are implemented in July, here at Greenhous we are ready to help you find the perfect Motability vehicle for you.
Browse our Motability range below to find your next vehicle.
About the author
Emily Hunt
Junior Digital Marketing Executive for Greenhous Group
[email protected]
07840 850519