Labour Shadow Minister for Disabled People, Marsha De Cordova, has condemned the proposed bonus for Motability charity boss Mike Betts.
“It is disgraceful that executive directors received millions in bonuses, particularly given that the scheme has been found to overcharge hundreds of thousands of disabled people for vital mobility support,” said Marsha De Cordova MP.
Adding that more clarity was needed, she said: “We urgently need accountability and transparency for this scheme, which should put disabled people’s interests at its heart.”
Betts, who runs Motability, a charity which provides wheelchairs and other services to disabled people, was due to receive a £1.8 million bonus.
— Jon Snow (@jonsnowC4) December 7, 2018
Betts is set to leave his role by 2020 after a report from the National Audit Office exposed his high pay.
The Motability firm is the only company in the UK that offers mobility solutions for disabled people in the UK and is funded mostly by state disability allowance.
Finally media led by @BBCr4today catch up with @Motability murkiness. Some of us tried a few years ago to shine a light on the workings of the state funded monopoly that subsidises the automotive industry £Billions. Follow the taxpayers’ money. CE’s pay is tip of a mucky iceberg.
— Karl McCartney (@karlmccartney) December 7, 2018
The report from the national audit office revealed over £1 billion of ‘unplanned profit’ and large cash reserves held by the charity. The audit also showed that customers were charged around £390 million more than was needed to cover the costs of running the scheme.
In a statement Motability said: “We always strive to keep prices down for customers. Our prices have consistently been 44 per cent cheaper than any leasing alternative.”
Neil Johnson, chairman of Motability Operations, said the company had taken on board the changes suggested by the NAO.
Motability Operations has generated over £1 billion of unplanned profit and holds more in reserves than other car leasing companies. Find out more in our new report: https://t.co/PiOs8er1im pic.twitter.com/xLFCsGkF7O
— NationalAuditOffice (@NAOorguk) December 7, 2018
MP Frank Field, chair of the parliamentary work and pensions committee said the levels of pay at the company were ‘Obscene’ and that it was “beyond appalling to learn that money that could have been used to improve the lives of disabled people will be lining his pockets instead”.
Words by: Harry Lye | Subbing by: Sam Carter