The Motability Scheme is introducing mandatory telematics tracking for thousands of drivers from 13 April, following a pilot programme that saw hundreds of vehicles removed for safety breaches.
Under the new rules, all first-time leaseholders and any household with a named driver under the age of 30 will be required to have a “black box” fitted to their vehicle. The DriveSmart system monitors driving behaviours including speed, braking, and acceleration to generate a weekly performance score.
The move follows a trial in Northern Ireland which resulted in 300 vehicles being removed from the scheme. Motability officials confirmed that one tracked driver was recorded travelling at 117mph in a 30mph zone.
Driving ‘scores’ to determine lease eligibility
The DriveSmart technology categorises driving behaviour into weekly ratings. While safe driving can earn users up to £160 a year in rewards – redeemable at retailers such as M&S and Asda – repeated poor performance carries significant penalties.
Drivers who receive more than four “red” weekly ratings within a 12-month period risk being removed from the scheme. Motability stated that while “personalised advice” would be offered after an initial red score, consistent low ratings would impact a user’s ability to remain on the scheme or join in the future.
Impact on young and first-time drivers
The mandate applies specifically to:
- All customers taking out their first-time lease.
- Any leaseholder under the age of 30.
- Any vehicle where a named driver is under the age of 30.
This includes family members, friends, or Personal Assistants (PAs) who are insured to drive the vehicle on behalf of the disabled customer.
Safety vs Independence
Nigel Fletcher, chief executive of the Motability Foundation, defended the policy as a necessary measure to “keep prices down and keep people safe.” He noted that data identified younger drivers as the highest-risk group within the scheme.
“This is a serious safety issue, not just for that individual, but everyone else in that community,” Mr Fletcher said. He emphasised that drivers would receive multiple warnings before losing their vehicle.
However, disability advocates have expressed concern. Critics argue that mandatory tracking encroaches on the independence of disabled people. Some drivers using vehicle adaptations, such as hand controls, have reported that sensors can misinterpret their driving style, with sensitive braking or acceleration triggering false “red” warnings.
New mileage caps and financial pressures
The introduction of telematics coincides with broader changes to the scheme’s cost structure. Following the November Budget, VAT and Insurance Premium Tax (IPT) changes are expected to increase the average Advance Payment for a vehicle by approximately £400.
Motability has also announced a reduction in the annual mileage allowance for new orders placed from 1 July 2026:
- The standard limit will be set at 10,000 miles per year (30,000 miles over a three-year lease).
- Excess mileage charges are set to rise to 25p per mile – a fivefold increase from the previous 5p rate.
Operational recommendations
In addition to the tracking hardware, Motability has introduced new “recommendations” for those on the scheme. These include taking a break every hour and limiting travel to no more than six journeys a day.
While exceeding these journey recommendations currently results in a red score that does not automatically terminate a lease, the volume of data being collected has led to calls for greater transparency.
Graham Footer, CEO of Disabled Motoring UK, said: “We understand the rationale for introducing DriveSmart from an insurance and scheme protection point of view, but it could potentially put many people off joining the scheme in the future.”
Motability currently supports over 700,000 people in the UK. The organisation maintains that these changes are vital to offset an estimated £300 million increase in insurance costs due by July.
