Motability Scheme changes from 1 July 2026: What you need to know, and why now is the best time to apply

11/06/2026

If you or a family member uses the Motability Scheme, you'll want to read this. Important changes are coming on 1 July 2026, and acting before that date could save you money and give you greater flexibility.

Here's everything you need to know, including how W R Davies Ford can help you find the right Ford on the Scheme before the changes take effect.

What's Changing on 1 July 2026?

To keep the Scheme sustainable without passing the full cost onto customers, Motability Operations has confirmed the following changes for all new applications placed on or after 1 July 2026:

• Reduced mileage allowance: New leases will include 10,000 miles per year (30,000 miles over a 3-year lease) instead of 20,000 miles per year.
• Higher excess mileage charges: If you go over your allowance, the charge will rise from 5p to 25p per mile (including VAT), making it more important to choose a mileage level that suits your needs.
• VAT on Advance Payments: For vehicles that require an upfront Advance Payment, VAT will now be applied at the standard rate, potentially increasing the cost for some models.
• VAT on included insurance: The insurance element of your lease will no longer benefit from full tax relief, which increases the overall cost of delivering the Scheme.
• Tyre replacement limits: Tyre replacements remain included, but new limits on the number of replacements will apply depending on the length of your lease.
• Overseas travel admin fee: If you take your Motability vehicle abroad, a small administration fee may now apply, and you'll need to notify your breakdown provider in advance.

Who Is Affected?

These changes affect new Motability Scheme applications placed on or after 1 July 2026. This includes customers who:

• Are applying to the Scheme for the first time
• Are renewing their lease after their current agreement ends
• Are currently considering whether to join the Scheme

If you're approaching the end of your current lease, or have been thinking about joining, ordering before 1 July 2026 locks in today's terms, including any current Advance Payment price and the higher mileage allowance.

At W R Davies Ford, we're proud to be an accredited Motability dealer with a wide range of Ford models available on the Scheme right now, many with low or zero Advance Payments.

View All Motability Offers​

Ready to Get Started?

Don't wait until after 1 July to explore your options. Our team at W R Davies Ford is here to help you find the right car and make the most of the Scheme before the new rules apply.

Contact us today to speak with our Motability specialists, book a test drive, or browse our current Motability offers.