Whilst the Department works closely with Motability and is responsible for the main disability benefits that provide a passport to the Motability Scheme, Motability Foundation is an independent charitable organisation that is wholly responsible for the terms and the administration of the Scheme, along with oversight of Motability Operations.

Motability also understand that living in rural areas often means having to travel further to access everyday services. To support this an additional 3,000 miles per year will be provided on leases for certain customers. Motability Operations’ Rural and Islands Isolation Framework uses national Governments' data on rural isolation to determine eligible postcodes. Motability Operations, which operates the Motability Scheme, is writing directly to customers in eligible postcodes.

Whilst the Department works closely with Motability and is responsible for the main disability benefits that provide a passport to the Motability Scheme, Motability Foundation is an independent charitable organisation that is wholly responsible for the terms and the administration of the Scheme, along with oversight of Motability Operations.

Motability also understand that living in rural areas often means having to travel further to access everyday services. To support this an additional 3,000 miles per year will be provided on leases for certain customers. Motability Operations’ Rural and Islands Isolation Framework uses national Governments' data on rural isolation to determine eligible postcodes. Motability Operations, which operates the Motability Scheme, is writing directly to customers in eligible postcodes.

Motability Foundation is a registered charity to help disabled people with their mobility and transport needs. Motability’s main focus is its ownership and oversight of the Motability Scheme. The Foundation also oversees delivery of grant programmes (including to other organisations) targeting areas outside the Motability scheme where solutions are required to meet the evolving transportation needs of disabled people.

The Foundation Community Transport Grant which was created to develop, improve and expand community transport provision awarded 11 grants at a cost of £4.2m in the financial year 2024/25 including to rural areas.

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.

Attendance Allowance is intended to help those with a severe disability who have long term care or supervision needs which arise after reaching State Pension age. Government mobility support is focused on people who are disabled earlier in life; developing mobility needs in older life is a normal consequence of ageing, which non-disabled younger people have had opportunity to plan and save for.

There is no constraint on what an award of Attendance Allowance can be spent on, and a recipient may choose to use this benefit to fund mobility aids.

Qualifying benefits for the Motability Scheme are the enhanced rate mobility component Personal Independence Payment (enhanced rate mobility component Adult Disability Payment in Scotland), higher rate mobility component Disability Living Allowance (higher rate mobility component Child Disability Payment in Scotland), Armed Forces Independence Payment and War Pensioners’ Mobility Supplement.

The Motability Scheme is designed to address the transport requirements of individuals with disabilities in the UK and is a lifeline in enabling disabled people to remain mobile, live independently and access employment.

For customers who cannot afford essential costs or who require more complex adaptations, the Motability Foundation continues to provide means-tested grants to those most in need of financial assistance.

The Motability Foundation works towards its vision that “no disabled person should be disadvantaged by poor access to transport”. To achieve this, it delivers grant programmes and supports innovative initiatives that address areas beyond the Motability Scheme, where new solutions are needed to meet the evolving transport needs of disabled people.

From 1 July, new leases will include a mileage allowance of 10,000 miles a year – e.g. 30,000 over a three-year lease or 50,000 over a five-year lease. Three out of four Scheme customers drive 10,000 miles or fewer per year. However, Motability recognise that a small number of customers will be unable to change driving behaviour or absorb the mileage charges. On 8 July, Motability announced an exceptions process for those who exceed this new limit for some journeys made for healthcare, education and employment. The customer will need to evidence this extra mileage.

The Motability Scheme is operated independently of Government. Decisions about eligibility, lease terms, mileage allowances and support arrangements are matters for Motability. The Government's role is to provide qualifying disability benefits that customers may choose to use to access the Scheme.

The Motability Scheme provides a vital lifeline to those who need it, however it historically benefitted from tax breaks which supported provision beyond the scheme’s core objectives, such as the lease of luxury cars. That is why at Budget 2025 the Government made tax changes to the scheme to ensure it delivers fairness for the taxpayer.

Prior to Budget 2025, the Government engaged closely with the Motability Foundation to ensure the Scheme would continue to provide access to transport for its customers, including the provision of a range of affordable vehicles which suit customers’ varying needs. This means customers are still able to access a range of vehicles using only their disability benefit, in line with pre-Budget provision. Additionally, vehicles designed or substantially and permanently adapted for wheelchair and stretcher users were not impacted by tax changes.

The Government consulted closely with the Motability Foundation charity to understand in depth how tax changes would impact the Motability Scheme and their customers. Our assessment of these impacts has been published on GOV.UK and can be found here: Motability Scheme: reforming tax reliefs - GOV.UK.

Qualifying benefits for the Motability Scheme are the enhanced rate mobility component Personal Independence Payment (enhanced rate mobility component Adult Disability Payment in Scotland), higher rate mobility component Disability Living Allowance (higher rate mobility component Child Disability Payment in Scotland), Armed Forces Independence Payment and War Pensioners’ Mobility Supplement.

Attendance Allowance is intended to help those with a severe disability who have long term care or supervision needs which arise after reaching State Pension age. It has never included a mobility component, and so cannot be used in payment for a leased Motability Scheme vehicle. Government mobility support is focused on people who are disabled earlier in life; developing mobility needs in older life is a normal consequence of ageing, which non-disabled younger people have had opportunity to plan and save for.

There is no constraint on what an award of Attendance Allowance can be spent on, and a recipient may choose to use this benefit to fund mobility aids. Disabled people over the age of 65 can apply to their local authority for assessment under the Blue Badge Scheme, which helps people with severe mobility problems to park close to where they need to go. Assistance from other sources may be available and details can be found on the Research Institute for Disabled Consumers (RiDC) website.

We do not have an estimate of the income or savings to be derived from the new mileage criteria. A series of measures were announced in the November 2025 Budget to strike the right balance between delivering a key service for disabled people and fairness to the taxpayer, saving over £1 billion by financial year 2030/31.

Motability Operations is an independent commercial company under contract to Motability to deliver the Motability Scheme. Motability Operations is owned by the four major banks (Barclays, HSBC, Lloyds, RBS). No ordinary dividends are paid, and all profits are reinvested in the company to benefit Scheme customers or donated to Motability the charity.

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 has 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.

Whilst the Department works closely with Motability and is responsible for the main disability benefits that provide a passport to the Motability Scheme, Motability Foundation is an independent charitable organisation that is wholly responsible for the terms and the administration of the Scheme, along with oversight of Motability Operations.

Motability have stated that, on average, customers drive around 7,500 miles a year but understand that living in rural areas often means having to travel further to access everyday services. On 14 July they announced that to support this, they are adding up to 3,000 additional miles per year onto the lease for certain customers.

They’ve used the Governments' data on rural isolation 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. Motability will identify and contact those eligible for this support and contact them directly by email or letter.

On 8 July Motability announced an exceptions process for those who exceed the new mileage limit for journeys made for healthcare, education and employment. The customer will need to evidence this extra mileage. This exception process is in line with Finance Conduct Authority (FCA) expectations, and any customer can request an exception at any point of the lease lifecycle. More information and how to apply can be found on the Motability website.

The Motability Scheme is operated independently of Government. Decisions about eligibility, lease terms, mileage allowances and support arrangements are matters for Motability. The Government's role is to provide qualifying disability benefits that customers may choose to use to access the Scheme.

Motability Foundation provides the Driving Lessons Grant to help disabled teenagers with severe mobility challenges learn to drive from age 16, as legislation allows them to hold a provisional licence. Driving can remove barriers to personal independence.

The Department does not have recorded information on how many 16-year-olds were in receipt of a vehicle or have received funding through the Motability Foundation Driving Lessons Grant. Motability Foundation is a registered charity regulated by the Charity Commission so is wholly responsible for the terms and the administration of the Motability Scheme. The Scheme is delivered by Motability Operations which is an independent commercial company under contract to the charity.

Motability Foundation provides the Driving Lessons Grant to help disabled teenagers with severe mobility challenges learn to drive from age 16, as legislation allows them to hold a provisional licence. Driving can remove barriers to personal independence.

The Department does not have recorded information on how many 16-year-olds were in receipt of a vehicle or have received funding through the Motability Foundation Driving Lessons Grant. Motability Foundation is a registered charity regulated by the Charity Commission so is wholly responsible for the terms and the administration of the Motability Scheme. The Scheme is delivered by Motability Operations which is an independent commercial company under contract to the charity.

Both prior to and following the announcement of tax changes to the Motability Scheme at Budget 2025, the Government has engaged closely with the Motability Foundation to understand in depth how tax changes would impact the Motability Scheme and their customers.

The Department does not have information on Motability fraud such as recorded crime, prosecutions and investigations as this is a matter for the Scheme. Motability Foundation is a registered charity regulated by the Charity Commission so is wholly responsible for the terms and the administration of the Motability Scheme. The Scheme is delivered by Motability Operations which is an independent commercial company under contract to the charity. Any misuse of scheme vehicles is taken seriously and Motability Operations has a dedicated unit that works to prevent, detect and handle such cases, and takes action as appropriate. Motability investigates information that it receives about misuse of the scheme vehicle and works with a range of partners, including the police.

The Department takes benefit fraud extremely seriously, as has been underlined by our campaign to warn people of the consequences of trying to defraud the benefits system. People who suspect benefit fraud can ring the National Benefit Fraud Hotline number on 0800 854 4400 to report in confidence any information which would help the Department’s officials in their investigations.

The Department does not have information on Motability fraud such as recorded crime, prosecutions and investigations as this is a matter for the Scheme. Motability Foundation is a registered charity regulated by the Charity Commission so is wholly responsible for the terms and the administration of the Motability Scheme. The Scheme is delivered by Motability Operations which is an independent commercial company under contract to the charity. Any misuse of scheme vehicles is taken seriously and Motability Operations has a dedicated unit that works to prevent, detect and handle such cases, and takes action as appropriate. Motability investigates information that it receives about misuse of the scheme vehicle and works with a range of partners, including the police.

The Department takes benefit fraud extremely seriously, as has been underlined by our campaign to warn people of the consequences of trying to defraud the benefits system. People who suspect benefit fraud can ring the National Benefit Fraud Hotline number on 0800 854 4400 to report in confidence any information which would help the Department’s officials in their investigations.