DWP Addresses Concerns Over Reduced Mileage Allowance in Motability Scheme

The Department for Work and Pensions has reacted after Motability reduced the number of miles people can drive before incurring additional charges. The annual mileage allowance for Motability users has been halved, with drivers now only allowed to travel 10,000 miles annually before facing a 25p charge for each mile over that limit. Previously, the limit was 20,000 miles, with a 5p excess charge per mile.

Allowance in Motability Scheme
Allowance in Motability Scheme

Plaid Cymru MP Liz Saville Roberts raised concerns about the impact of this change, particularly for disabled individuals living in rural areas, by questioning the Secretary of State for Work and Pensions, Pat McFadden. She asked what assessments had been made regarding the reduction in the mileage allowance under the Mobility scheme, effective from 1 July 2026.

In response, Sir Stephen Timms, Minister of State for Social Security and Disability, stated that it was estimated that 25% of Motability users would be affected by the reduction. He explained that while Motability Foundation is responsible for the Scheme’s terms and administration, the changes to the leasing package—announced on 26 March—apply only to new leases. Existing leases will not be impacted by the mileage reduction. Additionally, Motability Foundation reported that around 75% of customers currently use fewer miles than the revised 10,000-mile limit. However, they are considering measures to mitigate the impact for affected customers in specific circumstances.

 Allowance in Motability Scheme
Allowance in Motability Scheme

New Technology and Monitoring System Introduced

Motability has also rolled out a new technology initiative, requiring new drivers, as well as anyone with a driver under the age of 30, to install a device called Drive Smart. This device, a small wedge that fits into the car’s windscreen, works alongside a smartphone app. The technology monitors driving behaviour, including speed and braking patterns, and generates weekly reports classified as green, amber, or red. A ‘red’ week warning can result in the driver’s removal from the Motability scheme if four red assessments are accumulated within a year.

In a trial conducted in Northern Ireland last year, 300 people had their cars removed due to receiving red assessments. The scheme will now remove users if they get two consecutive red weeks or four within 12 months. Motability confirms that the system records the driver’s precise location, speed, braking habits, mobile phone usage, and even phone model and operating system during journeys.

Clarification on Red Alerts

Motability clarified that high usage alone will not result in a red alert, stating that if excessive mileage is the sole reason for a red score, it will not affect the customer’s lease. However, drivers who consistently drive dangerously, as indicated by the system, may face consequences. A ‘red week’ is typically triggered by persistent dangerous driving, such as extreme speeding, not isolated incidents like emergency braking.

The Drive Smart system does not penalise drivers for high usage, as long as they drive safely. In fact, the aim is to promote safer driving by providing feedback to users. The technology continues to evolve based on customer feedback to improve its effectiveness. The device, delivered by mail, must be set up within 10 days, and users will be instructed on how to register via the app.

 Allowance in Motability Scheme
Allowance in Motability Scheme

Motability’s Advice and Additional Recommendations

Motability has also issued guidelines urging drivers to take breaks every hour and to limit themselves to six trips a day. Exceeding this recommendation may trigger a red score, although it will not impact the lease. Motability also stated that the typical user drives an average of 7,500 miles annually. In Scotland, the cap for the scheme is still under review.

Despite these changes, Motability assures that the aim of the scheme is to maintain mobility for disabled individuals, offering a flexible yet safer driving experience through their new technological advancements.

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