Motability faces financial allegations but stands strong against its critics

Shock, horror. Motabilty Operations, part of the Motability charity, is facing allegations about its finances.

The UK organisation provides cars for disabled people who receive the highest level of benefit for mobility. It is accused of having enormous cash reserves and is said to pay its chief executive an outrageous six figure salary.

Extraordinary, we must investigate, say ministers and other MPs. BUT, hold on, what are the FACTS? What is the TRUTH?

The Daily Mail first revealed the allegations in a report published this week. In the Mail Online, the story was headlined “Revealed: Boss of car scheme for the disabled is on £1.7million… and YOU pay: MPs question Motability’s lavish salaries and its £2.4billion cash stockpile”.

Today, it returned to the story, quoting the Press Association saying:

A disability charity faces a double investigation after MPs raised concerns over the “grotesque” state of its finances.

Work and pensions secretary Esther McVey said she has asked the National Audit Office (NAO) to consider probing Motability amid reports it has a £2.4 billion surplus and pays its chief executive £1.7 million a year.

Labour’s Frank Field, chairman of the Work and Pensions select committee, also confirmed his panel would be launching its own “urgent inquiry”.

Allegations rebuffed

I am sure you will agree, if the allegations turn out to be true, it would be disgusting. Profiteering on the backs of the disabled. However, there are two sides to every story and Motability has hit back.

It has issued a strongly worded rebuff to the claims made against it. In its statement, Motability said:

motabilityThe Daily Mail claims there is a £2.4bn ‘cash stockpile’ or ‘spare £2.4bn’.

It’s quite clear to us that the Daily Mail has totally misunderstood what this £2.4 billion of reserves represents. It is not held as cash but is used to buy cars for disabled people. This reduces the amount of borrowing required.

It also underpins the scheme’s financial stability, protecting it from the business risks it faces, particularly in relation to used car values. The Charity Commission has today stated “that we consider the level of operating capital held by the company in order to guarantee the scheme to be conservative”.

Moving on to the issue of the salary paid to Mike Betts, the charity said:

The remuneration of Motability Operations directors is decided by the Motability operations board, based on the advice of their remuneration committee.

Successful and effective

Remuneration is reviewed against the market to ensure that it is both competitive over the long term, and to ensure that any rewards are related to performance especially in relation to the quality of service provided to customers.

The current chief executive of Motability Operations, Mike Betts, has been in place since 2003 and has been instrumental in ensuring the company is able to operate successfully and effectively.

So, we have allegations and a complete rebuff. Now, we will have to wait for the inquiries to be completed and all the facts to be established.

Until then, I’ll give Motability the benefit of any doubt. After all, like anyone else, the company should be considered innocent until proven guilty.

•  Having multiple sclerosis£££, I was awarded the top level of both care and mobility elements of Disabled Living Allowance. I chose to use the mobility element to get a Motability car when I lived in Wales. While I still have the same award, the mobility element is not paid outside the UK and so, living in Spain, I don’t receive it. However, if I moved back to Britain, I would be paid it again.

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Affiliate disclaimer: This affiliate disclosure details the affiliate relationships of MS, Health & Disability at with other companies and products. Read more.

* * * * * is the personal website of Ian Franks, a freelance medical writer and editor for various health information sites. He enjoyed a successful career as a journalist, from reporter to editor in the print media. He gained a Journalist of the Year award in his native UK. Ian received a diagnosis of MS in 2002 and now lives in the south of Spain. He uses a wheelchair and advocates on mobility and accessibility issues.

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Note: Health-related information available on 50shadesofsun website is intended for your general knowledge only and is not a substitute for medical advice or treatment for specific medical conditions. I am not a doctor and cannot and do not give you medical advice. You should seek prompt medical care for any specific health issues and consult a doctor before starting a new diet or exercise programme. Any opinions expressed are purely my own unless otherwise stated.


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