Motability pauses Drive Smart scheme, but customers raise concerns as wider changes remain in place

Disabled campaigners have welcomed Motability’s decision to suspend a controversial programme that uses technology to monitor how its customers are driving, but they have also called for it to scrap other damaging changes that remain in place.

There are also concerns that some disabled customers may have already been removed from the scheme because of technology that has now been found to be inaccurate and unreliable.

Motability has attracted waves of complaints from disabled customers over its Drive Smart scheme, with many criticising unreliable technology, loss of privacy, and lack of choice over signing up.

Motability Operations, the company which runs the Motability scheme, announced last Thursday that it was pausing Drive Smart because “the experience of using the app has not been as it should be and has caused concern”.

The scheme uses a small device fitted to the windscreen and an associated mobile phone app – or a black box fitted inside the vehicle for those who cannot use the app – to measure how well the vehicle is being driven, how far, and how often, and to analyse journey patterns.

But the company said Drive Smart will no longer be included in leases for those new to the scheme or for customers under 30 when they renew their leases.

Those who have already been forced to sign up can withdraw from Drive Smart and delete the mobile phone app.

Despite the announcement, Motability Operations made it clear it was not scrapping the programme.

Instead, it said it would continue to review it and is setting up a panel of customers to “help shape how Drive Smart develops”.

Although the announcement was welcomed by many customers, there has been no let-up in calls for Motability to abandon separate changes to most new leases – to be introduced from July – which include sharp cuts to annual mileage allowances and significantly increased excess mileage rates, as well as reduced vehicle choice.

A letter sent earlier this year to the government – signed by 70 disabled people’s organisations (DPOs) and allies – warned that these changes would “create further barriers for disabled people”.

Transport for All, which co-ordinated the letter, told Disability News Service (DNS) this week: “Disabled people have raised serious concerns about Drive Smart, and we’re pleased to see Motability has listened and hit pause.

“Now we need the same lessons applied to the wider changes to the scheme, including on mileage allowances and excess charges, and the government needs to be part of that conversation.

“Disabled people choose to lease Motability vehicles using the mobility element of our PIP because public transport still shuts many of us out.

“Our cars are how we get to work, take the kids to school and attend medical appointments.

“They’re how we see friends and family and take part in community life.

“The government says it wants to remove barriers to opportunity, but the chancellor’s changes to Motability in the November budget – made without consulting disabled people or carrying out a proper equality impact assessment – have achieved the opposite.

“It’s clear that on Motability, the government is failing its own test. It should think again.”

Charlie Proctor, a Motability customer who is taking legal action against the Treasury over the budget tax measures that led to Motability announcing these changes, said many disabled customers remained “deeply concerned” about the mileage restrictions, excess mileage penalties and other changes, despite the temporary pause to Drive Smart.

Chancellor Rachel Reeves used November’s budget to impose VAT at 20 per cent on advance payments and remove the current 12 per cent insurance premium tax exemption*.

Proctor, from Lancashire, told DNS: “While public attention has understandably focused upon the temporary suspension of the Drive Smart telematics rollout, the underlying legal and equality concerns raised within [my] judicial review remain unresolved.

“The proceedings concern far wider issues involving proportionality, disability discrimination, mobility access, and the foreseeable impact of these measures upon disabled motorists who depend upon the Motability scheme for essential daily living.”

Another customer, Oscar Acton, from County Durham, who had to use a Drive Smart device after taking on a new Motability lease, said: “I am very pleased to hear that Drive Smart has been paused.

“For many Motability customers, including myself, the constant worry of having our policy revoked over using our vehicles has been unbearable.”

He said the scheme was “not fit for purpose” and the recording of data was “inaccurate and oversensitive”, while disabled customers now “need reassurance from Motability that the scheme will be abolished completely”.

He said he was disappointed that Motability Operations continued to pursue cuts to mileage allowances, as disabled people are more likely to use higher mileage, and increasing the excess mileage charges “unfairly penalises the minority of customers that need to travel more”.

He said: “People who live in rural areas, people who have regular hospital appointments and people who need to drive door-to-door due to mobility issues are all going to be financially impacted by this disproportionate decision.”

Phil Swindin, a long-term Motability customer, who uses hand control adaptations to drive his vehicle and has worked for years in technology, said: “While the pause is welcomed, it changes nothing for the customers who have already lost their vehicles, their insurance, and their independence.”

He pointed to the 323 drivers who were removed from the Motability scheme between September 2025 and February 2026 due to penalties imposed for “proven and persistent dangerous driving” under the Drive Smart programme.

In most of those cases, the disabled customer was able to continue their Motability lease through another named driver, but 52 customers decided they could no longer continue with the lease and had to return their vehicle.

Swindin said: “Both Motability Operations and the insurer behind the Direct Line Motability brand are regulated by the Financial Conduct Authority, and a concerted effort is already underway collecting evidence for regulatory complaints that could result in serious consequences for both organisations.”

Disabled actor Keron Day, another Motability customer, who has played a significant role in highlighting Drive Smart’s flaws, welcomed the Motability climbdown.

His campaigning led to a meeting in Penzance, west Cornwall, with Andrew Miller, chief executive of Motability Operations, and Nigel Fletcher, chief executive of Motability Foundation**, which was hosted by Day’s Liberal Democrat MP, Andrew George.

A week later, Motability Operations announced the pause to the Drive Smart rollout.

Day said: “I commend the leadership at Motability for listening to the concerns raised about Drive Smart, recognising the seriousness of the issues for disabled people’s lives – particularly around independence and safeguarding – and acting swiftly to address them.”

But he said he would continue to work for changes on the mileage issue because of the impact this would have on disabled people’s lives.

Motability said this week that the need to reduce accidents, improve driving behaviour and help to manage insurance costs remained “critical for the scheme’s long-term sustainability, and technology like Drive Smart can play an important role” but “must be clear, easy-to-use and support the independence of the disabled people who rely on the scheme”.

Asked if it would look again at the cases of drivers already removed from the scheme, a Motability Operations (MO) spokesperson claimed there were only errors on about 0.005 per cent of recorded journeys [fewer than 200 journeys incorrectly recorded out of about four million logged on Drive Smart] and any such mistakes had been used to improve the app.

The MO spokesperson said: “We’ll continue to improve the experience for those who want to use the app during this pause, and learn from the new customer experience panel.

“We’re happy to discuss drivers’ individual circumstances with them, and their ability to be a named driver will depend on the reasons for their removal.

“For example, we would not reinstate named drivers who have broken the conditions of a lease by having multiple occasions of dangerous driving or have been found speeding.”

Asked if MO would look at the wider changes to the scheme, he said: “We’re having to make changes to the mileage allowance due to the new tax costs announced in the autumn budget which take effect for new leases from July.

“These costs would add £1,100 to leases on average if no other action is taken, and we know this would be unaffordable for many customers.

“By changing the mileage allowance, we can offset the majority of these tax costs and offer a range of vehicles with no advance payment.

“Most people who use the scheme will be unaffected as the majority of customers (73 per cent) currently travel 10,000 miles a year or less.”

He said there was still a wide range of vehicles available through the scheme.

Despite these comments, the minister for social security and disability, Sir Stephen Timms, said in response yesterday (Wednesday) to a written question about the impact of the changes on rural drivers: “Motability understands that this will affect customers differently and is keeping these changes under review.”

Asked if it had concerns about any decisions its insurer Direct Line Motability (DLM) had taken that were based on unreliable Drive Smart data, and what steps it had taken to ensure DLM was treating disabled customers fairly, the spokesperson said: “Motability Operations, overseen by the Motability Foundation, is ultimately responsible for ensuring that the scheme operates sustainably for the benefit of all customers.

“It was not an underwriting product or pricing decision taken by Direct Line Motability.”

He added: “We’ve listened to all the customer feedback we’ve had about Drive Smart.

“We’re committed to continuing to listen to customers, which is why we’ve created a customer panel.”

Asked if it was confident that it had treated disabled customers properly during the Drive Smart episode, Direct Line said it was “committed to treating all customers fairly, including disabled customers”.

It said that the “telematics data” used within the Drive Smart programme “is collected and owned by Motability Operations and all decisions based on this data sit with Motability Operations.

“Direct Line Motability has no role in making decisions based on the telematics data and is therefore unable to comment on such decisions.”

A Direct Line spokesperson added: “Motability Operations has paused its Drive Smart programme and we are working closely with them to support Motability Scheme customers following this announcement.”

*Only vehicles with substantial adaptations for wheelchair- and stretcher-users are exempt from the new taxes, which will be imposed on new leases from July

**Motability Foundation, the charity that oversees the Motability scheme, is a Disability News Service subscriber