Margaret Greenwood MP challenges government over excess profits at Motability

You are here: Home / News / Margaret Greenwood MP challenges government over excess profits at Motability
09 Feb 2018

Margaret Greenwood MP, Shadow Minister for Employment and Inequalities, has challenged Work and Pensions Secretary, Esther McVey, on the £1.7 million pay last year of Motability Chief Executive, Mike Betts, and the company’s £2.4bn reserves.

Motability provides vehicles for disabled people to help them live independent lives.

Last year 51,000 disabled people who were reassessed for the new benefit, the Personal Independence Payment, lost eligibility for the Motability scheme.

More than 3,000 were reinstated on appeal, but many of those people lost their cars in the meantime.

Margaret Greenwood MP was speaking in a debate on an Urgent Question in the House of Commons calling the government to account.

Margaret Greenwood commented:

“I and my Opposition colleagues are deeply concerned at the level of the Chief Executive’s pay and the £2.4bn accumulated reserves.

“Last year alone 51,000 disabled people lost access to the scheme following the changes the government made to eligibility criteria.

“When questioned about the way that Motability operates, the government’s stock answer has been that Motability Operations Ltd is an independent company.

“However, the Department for Work and Pensions directly pays Motability Operations Ltd around £2 billion a year on behalf of disabled people in receipt of social security to enable them to lead more independent lives through the use of an adapted car.

“Motability is effectively funded by the taxpayer via social security payments.

"We have a right to know if the government has properly assessed the value it provides for both taxpayers and disabled people.”

In her speech Margaret Greenwood, on behalf of Labour, questioned the Work and Pensions Secretary about the Government’s monitoring of Motability, the Government’s meetings with Motability and value for money for taxpayers of the scheme.

Margaret Greenwood added:

“The government has now asked the National Audit Office to investigate the finances of Motability.

“That is a positive step, however, the government has serious questions to answer about the level of scrutiny it has exercised on behalf both of taxpayers and the disabled people who rely on their cars for independence.”

You can find Margaret Greenwood MP’s speech on Motability at http://bit.ly/2C89foP



back