Drivers on 6 benefits hit by new ‘seismic’ road | Tech News
Motorists receiving six sorts of benefits will discover a “seismic” change to road guidelines from July as main updates come into impact. Updates to the Motability Scheme got here into impact from July 1, with new mileage limits, extra charges and upfront prices hitting drivers.
The Motability Scheme permits disabled people to offer up some of their benefits in exchange for leasing a new vehicle. Those on incapacity benefits can declare the benefit, together with these securing Personal Independence Payment (PIP), Disability Living Allowance (DLA).
Those on Adult Disability Payment (ADP – Scotland), Child Disability Payment (Scotland), Armed Forces Independence Payment (AFIP) or the War Pensioners’ Mobility Supplement (WPMS) also can secure a car beneath the programme. However, guidelines across the scheme have been tightened with some of essentially the most vital adjustments in years.
Tom Preston, CEO at Hippo Leasing, defined that the replace could be one of essentially the most “seismic” adjustments for disabled road customers.
He stated: “The changes introduced to the Motability Scheme from 1 July 2026 represent a seismic shift for disabled motorists across the UK. While the VAT and Insurance Premium Tax reforms are government-imposed, the mileage changes reflect Motability’s own response to rising costs, and together, the impact on new applicants is significant.”
Among the biggest updates is a new mileage cap, with motorists only allowed to drive 120,000 miles per year instead of 29,000. Exceeding the cap will now cost road users up to 25p per mile, an increase from 5p in a five-fold increase.
It means that any driver going 4,000 miles over the limit will face a hefty £1,000 penalty. Average Advance Payments are also climbing by approximately £400 in another blow for road users.
He explained: “An average increase of roughly £400 on Advance Payments, mixed with a mileage allowance that has been cut in half, from 20,000 to 10,000 miles per yr, and extra expenses which have risen fivefold from 5p to 25p per mile, signifies that many drivers might be priced out of the scheme, and people renewing might face the troublesome alternative of accepting greater prices or leaving the scheme with out a vehicle.”
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