UK drivers to be slapped with new 10,000-mile rule | Tech News

Certain drivers throughout the UK will be slapped with a new 10,000-mile restrict below a main new rule change coming into impact this summer time. Updates to the Motability scheme are set to come into impact from July 1, with restrictions on mileage one of the main adjustments.

Under present guidelines, automobiles below the Motability scheme can journey up to 60,000 miles over a three-year lease with out incurring further charges. This works out at 20,000 miles per yr, or 100,000 miles over a five-year lease.

However, new updates imply orders positioned from this summer time will solely come with a restrict of 10,000 miles a yr. This would work out at simply 30,000 over a three-year lease and 50,000 over a five-year period.

The scheme additionally covers the price of car insurance coverage, upkeep, servicing, and MOT assessments in an all-in-one bundle. Meanwhile, many vehicle variations akin to hand controls or stowage hoists can be found to be fitted to fashions at no further price. However, Motability has burdened that these updates will solely apply to new orders positioned on or after 1 July 2026.

Andrew Miller, CEO of Motability Operations, defined that the adjustments had been being put into place to defend the scheme due to rising prices.

He mentioned: “In last year’s Autumn Budget, the UK Government announced tax changes that affect the Scheme. From 1 July 2026, VAT and Insurance Premium Tax (IPT) will apply to most leases.

“Together, these changes mean it will cost significantly more to run the Scheme. If we did nothing, the average cost of a new lease would increase by around £1,100.

“It was clear to me that simply passing all these costs on to customers was not an option. We had to carefully consider how to reduce the tax impact as much as possible, but also focusing on changes that reflect how most customers already use their vehicles.”