Motorists in Scotland who rely on the Motability Scheme face major changes set to take effect from 1 September 2026. The overhaul alters mileage limits, tyre entitlements and charges for going over the allowance. The adjustments follow wider tax reforms announced in the 2025 Autumn Budget and could change how thousands budget for transport.
Why the Motability rules are being updated
The shake-up traces back to tax changes unveiled by former Chancellor Rachel Reeves in the 2025 Autumn Budget. The government said reforms to tax breaks affecting Motability and similar schemes will help raise funds over the next five years.
Motability has confirmed the rule changes apply to customers whose allowance comes via Social Security Scotland. That includes adults and children on disability payments.
Who will feel the impact
- More than 900,000 people use the Motability Scheme across the UK.
- Only new leases placed on or after 1 September 2026 will follow the new rules.
- Existing contracts signed before that date will remain under current terms.
- The changes primarily affect customers receiving Scottish disability payments, such as SADLA, ADP and CDP.
Major rule changes explained
Motability describes the adjustments as significant, with the mileage allowance cited as one of the largest shifts. Key areas affected include:
- Mileage caps for lease packages.
- Number of tyre replacements included in the contract.
- Excess mileage charges applied when drivers go over their limit.
- New administration fees for taking a vehicle abroad to the EU.
New lease limits and charges from September 2026
Three-year lease terms (new orders)
- Mileage allowance: 30,000 miles.
- Tyres: Up to six replacements, including up to four for damage.
- Excess mileage charge: 25p per mile, including standard-rate VAT.
- VE103 admin fee: £22 to take the car abroad to the EU.
Five-year Wheelchair Accessible Vehicle (WAV) leases (new orders)
- Mileage allowance: 50,000 miles.
- Tyres: Up to 10 replacements, including up to six for damage.
- Excess mileage charge: 25p per mile, including standard-rate VAT unless VAT relief applies.
- VE103 admin fee: £22 for travel to the EU.
How current lease packages differ
Customers with leases signed before 1 September 2026 keep existing entitlements. The current terms include higher mileage and different fee levels.
Three-year lease terms (existing orders)
- Mileage allowance: 60,000 miles.
- Tyres: Up to eight replacements.
- Excess mileage charge: 5p per mile plus standard-rate VAT.
- VE103 fee: No admin charge to take a car abroad.
Five-year WAV leases (existing orders)
- Mileage allowance: 100,000 miles.
- Tyres: Up to 10 replacements.
- Excess mileage charge: 5p per mile plus standard-rate VAT.
- VE103 fee: No admin charge to take a WAV abroad.
Financial impact and what changes mean for drivers
For many users, the higher excess mileage charge and lower mileage caps will raise running costs for long-distance drivers. Reduced tyre entitlements may also increase out-of-pocket repair bills.
- Drivers who typically exceed the new limits could see a sharp rise in excess mileage costs.
- Those who travel abroad in their Motability vehicles face a new £22 admin fee.
- People with high annual mileage should assess whether a different lease term fits their needs.
Context from Social Security Scotland and Motability
Social Security Scotland provides the Scottish Adult Disability Living Allowance, Adult Disability Payment and Child Disability Payment. Motability says the rule changes are necessary to align with the broader budget reforms.
The organisation also emphasises that customers with active leases will not be moved onto the new terms mid-contract.
Practical steps for current and prospective users
- Check the start date of any new lease before signing.
- Request a written breakdown of mileage limits and tyre entitlements.
- Estimate annual miles to gauge potential excess charges under the new rates.
- Contact Motability or your local Social Security Scotland office with questions.
Questions drivers are asking now
- Will dealers offer longer lease options to offset reduced annual mileage?
- How will VAT relief rules affect people who qualify?
- What support is available for high-mileage drivers living in remote areas?
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