Motability (Charity) How To Make money

[NATURAL ANKLING]

Hi,
One of my neighbours worked for Motability, he expanded his house to as large as you could be allowed, retired early then moved on to a nice retirement.
Just to point out, the firm below works for a charity which manages the money.
https://www.theguardian.com/society/201 ... 17m-salary
The link above looks like 17 but is 1.7!
"A report by the government spending watchdog, the National Audit Office (NAO), published on Friday says as well as his “generous” remuneration, Betts is in line for a previously undisclosed performance bonus worth about £2.2m."
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"The targets were “easily exceeded” and in the first seven years of the plan, five executive directors received “generous” remuneration of £15.3m in total, a near fourfold increase for what the NAO suggests was unexceptional performance"
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"Although Motability does not directly receive public funding, critics point out that it receives about half of its annual £4bn income from disability benefits redirected to it by the Department for Work and Pensions (DWP) on behalf of claimants. It also receives £888m worth of tax breaks that no other firm is entitled to, and is in effect a monopoly"

[pete75]

<SNIP>

Do you know all about your neighbour's finances? He could have retired with money from savings, inheritances, lottery win etc etc...

[PH]

What's the story? They seem to have done well by offering what their customers want, or are the users unhappy? Although the money has originally come from the DWP it's for the recipient to decide how to spend it. Not sure of the how and why of the tax breaks, it doesn't really go into what they consist of, there may be a case for reviewing them, there may also be a case for ensuring other providers can enter the market. I see nothing inherently wrong with such a company making a profit, the couple of people I know who have their cars through them seem happy with the value they receive.
Good luck to anyone with a £1.7m salary, rather than criticising them I'll save my anger for the unfair tax system we have.

[peetee]

Did by any chance these executive directors have connections to The Cabinet around the time that Motibility was formed?

[Oldjohnw]

by any chance these executive directors have connections to The Cabinet around the time that Motibility was formed?

Unlikely for the current directors given that it was founded in 1977,

[NATURAL ANKLING]

Hi,
I am not criticising the help many people get from the scheme but the money to employees and the revenues are through the roof!

https://www.parliament.uk/business/comm ... hed-17-19/

"Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said:
"The Motability Scheme is a valuable service that is helping over 600,000 disabled people live more independently. But such high levels of executive pay and significant financial reserves are difficult to square with the honourable objectives of the scheme.
It seems that Motability may have lost its way. DWP should ask the NAO to carry out a full inquiry into the value for money of the Motability Scheme. This could help ensure that those who rely on the scheme are able to access it on the best value terms."

The usual seat polishing I am surprised their pants don't catch fire-
https://www.bbc.co.uk/iplayer/episode/b ... -committee

[Tangled Metal]

Something about it was on R4 recently. IIRC the business that runs the scheme / spends the money doesn't actually spend all the money it receives. As in heading towards half doesn't get spent each year I think it said (but half asleep driving to or from work at the time so don't remember the details properly ).