Important Updates to the Motability Scheme: What You Need to Know

Date Posted: 12 June 2026

The UK Government recently announced tax changes that will impact the Motability Scheme. Beginning Wednesday, 1 July 2026, VAT and Insurance Premium Tax will apply to most new leases.

To manage these additional costs while keeping the Scheme affordable and sustainable for the long term, Motability Operations has introduced a few careful updates to the lease packages. We want to ensure all our FJ Chalke customers are fully informed about how this might affect their next vehicle.

Here is a clear breakdown of what is changing, what is staying the same, and what it means for you.

What's Changing for New Leases

These updates only apply to new vehicle orders placed on or after 1 July 2026.

Mileage Allowance: New three-year leases will now include a 30,000-mile allowance, while new five-year Wheelchair Accessible Vehicle (WAV) leases will include a 50,000-mile allowance. Since the average Scheme customer drives around 7,500 miles a year, this allowance will continue to easily cover the vast majority of drivers. If you need to drive more, extra mileage can still be purchased.
Tyre Replacements: New leases still include tyre replacements, now guided by a fair use policy. A three-year lease covers up to six tyres (with a maximum of four for damage). A five-year lease covers up to ten tyres (with a maximum of six for damage).
EU Breakdown Cover: If you plan to take your car outside the UK, you will still need a VE103 certificate. For orders placed on or after 1 July 2026, a £22 admin fee will apply to obtain this certificate from the RAC.

If You Already Have a Current Lease

Nothing is changing for you right now. The new guidelines will not affect your current vehicle or contract. These updates will only apply when it comes time to place a new application on or after 1 July 2026.

What is NOT Changing

The core value of the Motability Scheme remains exactly the same. Your lease package is designed to give you confidence and peace of mind on the road, and it will continue to include:

Insurance for up to three named drivers
Comprehensive servicing and maintenance
Full UK breakdown cover
Dedicated customer support

We Are Here to Help

Navigating changes to your mobility package can sometimes feel overwhelming, but you don't have to figure it out alone.

For any questions, please contact our Motability team. Our specialists are ready to help you understand exactly what these updates mean for your driving needs and guide you smoothly through your next vehicle order.