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The Motability Scheme remains one of the UK's most valuable mobility programmes, helping thousands of eligible customers lease a new vehicle using their qualifying mobility allowance.
From 1 July 2026, a number of important changes will be introduced that will affect all new Motability Scheme leases starting on or after this date. These updates will impact areas such as mileage allowances, taxation and certain running costs, making it more important than ever for customers to understand how the Motability Scheme is changing before placing their next order.
If you're considering a new Motability Scheme vehicle, planning ahead could help you make the most informed decision. At Waylands, we're here to guide you through the changes and help you choose the right vehicle for your needs.
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What Is Changing from 1 July 2026?
Several updates will apply to all new Motability Scheme agreements commencing on or after 1 July 2026. These changes follow wider government reforms affecting vehicle leasing and taxation across the UK.
One of the most significant changes is the reduction in the standard annual mileage allowance for new leases.
Current allowance: Up to 20,000 miles per year (depending on agreement type)
New allowance: Standard allowance reduced to 10,000 miles per year
For customers who regularly travel for work, healthcare appointments, family commitments or everyday mobility needs, this reduction could have a significant impact.
Higher Excess Mileage Charges
Customers who exceed their agreed mileage allowance may also face increased excess mileage charges.
New excess mileage rate: Approximately 25p per mile
Drivers who cover higher annual mileages should carefully consider how this change may affect their overall vehicle costs.
VAT and Insurance Premium Tax Changes
Additional taxation will be introduced on new Motability Scheme leases from July 2026.
These changes include:
As a result, some customers may see changes to the overall cost of leasing a vehicle through the Motability Scheme.
Certain maintenance-related benefits are also expected to change, including:
Why Are These Changes Being Introduced?
The updates form part of broader changes to vehicle taxation and leasing regulations across the UK.
Government reviews of schemes such as the Motability Scheme are designed to ensure they remain aligned with current tax legislation, environmental objectives and long-term funding arrangements. As these frameworks evolve, the Motability Scheme must adapt its pricing and allowance structure accordingly.
Should You Order Before 1 July 2026?
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Many customers are understandably asking whether they should place an order before the new rules come into effect.
While every customer's circumstances are different, timing could be an important factor.
In most cases, orders placed before 1 July 2026 will be processed under the current Motability Scheme rules rather than the revised structure. This may allow customers to benefit from:
Once the new Motability Scheme rules take effect, all new leases will be subject to the updated terms.
Vehicle Availability and Delivery Times
When deciding whether to order before the deadline, it's important to consider vehicle lead times.
Delivery times can vary considerably depending on the manufacturer, model and specification chosen. Some vehicles may be available immediately, while others could take several weeks or months to arrive.
At Waylands, our Motability Scheme Specialists can help you understand:
What Does This Mean for Existing Motability Scheme Customers?
If you're currently leasing a vehicle through the Motability Scheme, your existing agreement will not be affected by these changes.
The updates only apply to new leases that begin on or after 1 July 2026.
However, if your current agreement is approaching its end date, now may be a good time to start exploring your options and understanding how the upcoming changes could affect your next vehicle.
How Waylands Can Help
Choosing your next Motability Scheme vehicle can feel overwhelming, particularly when Motability Scheme changes are involved.
Our dedicated Motability Scheme teams are on hand to help with:
Our goal is to provide clear, straightforward advice so you can make a confident and informed decision.
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Key Takeaways
Frequently Asked Questions
What changes are being made to the Motability Scheme in 2026?
From 1 July 2026, new Motability Scheme leases are expected to include reduced mileage allowances, higher excess mileage charges, and changes to VAT and Insurance Premium Tax treatment.
Do the changes affect existing Motability Scheme customers?
No. Existing agreements will continue under their current terms. The changes only apply to new leases starting on or after 1 July 2026.
What will the new mileage allowance be?
The standard annual mileage allowance for new leases is expected to reduce to 10,000 miles per year.
Will Motability Scheme vehicles become more expensive?
Some customers may experience higher overall lease costs due to changes in taxation and updated charging structures.
Should I order my Motability Scheme vehicle before 1 July 2026?
Depending on your circumstances, ordering before the deadline may allow you to benefit from the current Motability Scheme terms. Vehicle availability and delivery times should also be taken into consideration.
How can Waylands help?
Waylands can help you compare vehicles, understand the upcoming changes, check delivery times and guide you through every step of the Motability Scheme application process.