Disability Sheffield
Zoom: A A A A Current Page  »  About  /  Blog  /  Blog Article

National Audit Office Publish Report into the Motability Scheme

National Audit Office Publish Report into the Motability Scheme

In May 2018, a report by the House of Commons Work and Pensions and Treasury select committees raised questions about the structures and governance of the Motability Scheme; government support for the scheme; the levels of reserves in Motability Operations; the remuneration of its senior staff; and the relationship between Motability and the Department for Work & Pensions.

Along with the Secretary of State for Work and Pensions, the Committees recommended that the National Audit Office (NAO) should carry out a review of the scheme. The NAO scrutinises public spending for Parliament and is independent of government.

The Motability Scheme, allows disabled people to exchange their mobility allowance to fund the lease of a new car, mobility scooter or electric wheelchair.

The now published National Audit Office report into the Motability Scheme considers the Motability scheme’s customer offer and performance; the scheme’s financial model, its impact and profitability; and the governance of the scheme and remuneration of Motability Operations’ senior management.

Disability Rights UK reports a summary of the NAO’s report findings and recommendations. Although Motability provides an “excellent” service, Motability Operations reserves are now so large that they stand at £2.6 billion. The report also discussed executive pay explaining that “Motability has had difficulty over a long period of time influencing Motability Operations to set executive pay at the levels the charity considers appropriate.” £15.3 million in bonuses was paid out to top executives of the company and Mike Betts, the chief executive of Motability Operations Ltd, was set to receive a £2.2 million bonus, in addition to his £1.7 million annual salary; which was previously described by MPs in a Guardian article in May 2018 as totally unacceptable by MPs.

The NAO recommends that “Motability develop and publish a long-term strategy, based on broad and open consultation, that sets out how it can put the significant income it expects to continue to receive from Motability Operations to best use,” noting that if Motability Operations adopted an approach more in line with other car leasing companies, it could hold a lower level of reserves and increase the level of funds available to distribute to the charity. The NAO concludes in its report that careful consideration is needed relating to the scheme’s governance and Motability Operations’ executive remuneration. The government also needs to regularly review the value of the support it provides, in light of its objectives for mobility allowances.

Following the news of Mr Betts’ bonus, Motability Operations Ltd announced that Mr Betts would stand down from his position by May 2020. The organisation’s chairman, Neil Johnson, will retire in April 2019.

Share

Leave a comment

Blog Archive

Articles by Category

Articles by Tag

Articles by Date

* indicates required

Sign up to our latest news on local and national disability related issues and events

Recent Feedback    (We'd love to receive your feedback, please click here to add some)

When I moved to Sheffield nearly five years ago it was my "go to" organisation. I expect it to stay that way. All the staff and volunteers seem to pull out little gems of effort that disabled people like me couldn't do without. Professionally and personally - I love em :)
The service received was rated as:  

Andrew Crooks

Very good presentation, brave of the speakers to tell their stories and had a very high impact - feedback from Mate/Hate Crime presentation and video session at Safeguarding Working Together Conference
The service received was rated as:  

feedback training

Disability Sheffield is a forward-thinking, energetic organisation doing a lot of positive work in Sheffield. I have no doubt they will continue to do so for a long time to come.
The service received was rated as:  

Ruth

A fantastic presentation thought provoking and good questions from the floor around promoting this film/message to the general public not just professionals.
The service received was rated as:  

training feedback