UK DWP expands carer allowance eligibility and reduces Motability mileage caps

The Department for Work and Pensions announced that the earnings threshold for Carer’s Allowance has been raised from £196 to £204 per week. Sir Stephen Timms said the change will allow an additional 60,000 unpaid carers to claim the benefit of £86.45 a week.

From 1 July 2026 the Motability Scheme will cut the standard annual mileage allowance for new lease vehicles to 10,000 miles (30,000 miles over a three‑year lease). Wheelchair‑accessible vehicles will be limited to 50,000 miles over five years. Any excess mileage will be charged at 25p per mile (21p where VAT concessions apply). Motability said the adjustment is needed to keep the scheme affordable and sustainable.