I’ve received a reply from motability on the questions I sent:
I appreciate you taking the time to set out your additional questions. I understand why these points matter to you.
As I explained in my previous email, the changes apply to new vehicle orders placed on or after 1 July 2026. Existing leases are not changing right now. After reviewing the points you have raised, my position remains the same.
These changes have been introduced in response to UK Government tax changes and wider cost pressures. From 1 July 2026, those changes add around £300 million a year to the cost of delivering the Scheme. Our priority has been to protect the core all-inclusive package that customers rely on, including insurance, servicing, maintenance, breakdown cover and support, while keeping the Scheme sustainable for the long term.
You asked what savings are being made through the mileage changes. Mileage is one of the biggest cost drivers in the Scheme, and the revised allowance was introduced to better reflect typical customer usage overall and to help manage vehicle, maintenance and insurance costs. We know this will feel more difficult for some customers, especially where travel is essential or where public transport is limited.
While I note your comments about the overall customer figures, the mileage allowance was set using Scheme-wide usage data and was introduced to reflect how most customers use their vehicle overall, while helping to manage the long-term cost of the Scheme
On consultation, we have engaged with customers through surveys, interviews and focus groups. We have also engaged more than 100,000 customers over a period of months, although with a customer base of more than 890,000 we cannot contact everyone each time. I appreciate that you did not receive a survey, but that does not mean engagement did not take place.
In relation to CEO pay, the standard position is that our CEO’s pay is set by an independent committee and reflects the experience needed to run a large, complex organisation such as Motability Operations.
You also asked what we are doing to highlight hardship caused by the Government’s tax changes. We continue to engage regularly with Government, policymakers and other stakeholders about how the Scheme works, why it matters, and the impact of these changes on disabled people’s mobility and independence.
You also asked about DriveSmart. DriveSmart currently applies only to specific leases:
• those with a driver under 30
• those enrolled in DriveSmart following a Mid Lease Review from 3 March 2026
• new customers joining the Scheme for applications from 13 April 2026
If none of the above apply, DriveSmart would not be included in the lease. These are the current criteria, and while this may evolve in future, any changes would always be clearly communicated to customers in advance.