December 4, 2018 at 2:12 pm #66708
Friday sees the National Audit Office (NAO) publish its report into Motability Operations.
There has been some reports in the press relating bonuses paid to directors. I am not going to post any links. Sorry.
Expect TV and Print to take up the story.
December 7, 2018 at 8:34 am #66917
“The Motability scheme delivers an excellent service to its customers, earning remarkable satisfaction levels. Motability Operations’ management deserves credit for having turned the business around and investing in features that have enhanced benefits for customers. However, Motability Operations has taken an unnecessarily conservative view of risk, holds more in reserves than arguably it needs and has also made large unplanned profits. On top of which there has been an internal view of executive performance as being ‘consistently extraordinary’, with the reward to match, despite pressures from the Charity. “There is much to be proud of, but we think that stakeholders, including government, need to give far-reaching consideration to the scheme as it now stands, and to its future, in particular, whether its governance and accountability arrangements are robust enough.”
Amyas Morse, head of the NAO, 7 December 2018December 7, 2018 at 8:55 am #66918
The NAO report said the scheme had made more profit than intended, and that its customers had been charged £390m more than was required to cover lease costs.December 7, 2018 at 9:41 am #66924
What is meant from, and I quote “ management deserves credit for having turned the business around “ unquote ?
Is this suggesting that Motability at sometime in the past has been on the edge of bankruptcy or have customers view of Motability changed in some way from bad to better ?
In my view from being a customer for near on 11 years now that nothing has change as a customer and I’ve always rated Motability above average, not perfect, but better than most but that statement seems to apply that some sort of massive rescue mission has been achieved.December 7, 2018 at 9:51 am #66925
Quite a damning report.Wonder what changes we might see as a result…December 7, 2018 at 10:08 am #66927
Not totally unexpected:
The boss of Motability Operations is stepping down after it emerged he is set to receive a £2.2m bonus on top of his seven-figure salary.
Mike Betts, the chief executive of Motability Operations, came under fire earlier this year after MPs called his annual £1.7m pay package “totally unacceptable”.
A report by the government spending office, the National Audit Office, published on Friday says as well as his “generous” remuneration, Betts is also in line for a previously undisclosed performance bonus worth about £2.2m.
Following the report, Mobility Operations announced Betts would stand down from his position by May 2020, while the group’s chairman, Neil Johnson will retire in April 2019.December 7, 2018 at 10:40 am #66938
all through this and the various newspaper articles what people dont seem to get is that its our money we are talking about not the governments or daily mails. this situation has arisen from what i can see because the motability operations execs have been lining their pockets and the charity motability hasnt had the mechanisms or balls to reign them in.
the scheme is well run on the whole with the aim of helping disabled people particularly in light of the chamges govt has made and the changeover to uc. unfortunateley a little too well run when it comes to being risk averse to the extent of bigger profits. they would soon scream if it were losing money i think.
if monies accumulated are to be returned to anyone it should be to those who leased vehicles not the government.
in my veiw apart from changes to personel and the governance of both organisations not much needs to change other than a reveiw of their risk assessment.
possibly some of the reserves could be used to change the differential re automatics and reduce APs.December 7, 2018 at 2:14 pm #66954
My opinion – Betts is staying just long enough to get his bonuses, but out before the leasing market is shook up with whatever the brexit outcome is and the arrival of the ev evolution and the uncertainty of the residual values – what a smart cookie he is.
I think we won’t see much difference to the scheme as a customer – government will stop the tax relief and so profits will go back to them that way. It’s the charity arm that needs to produce a schedule on how they will spend their money in the future – this is will have to be more structured with budgets set for different grants – this may backfire on us, as once a budget is used for a particular thing i.e help with AP, that will be it until the next financial year which would be unfair on some.
As for Betts in the future – retire, sit on the board of an existing company, or set up a rival leasing firm? I hope the latter. I respect the guy for what he’s done for motability, and if he can set up a rival leasing company that will accept pip awards indirectly – and maybe the lower mobility components, not just enhanced, then we will be the winners from this.
That’s my conclusions right or wrong, we shall have to wait and see. lolDecember 7, 2018 at 4:07 pm #66967
I agree the government is likely to stop the 888 million in tax relief, I do however anticipate we are likely to loose out and AP will go up, will Mr Betts start up yes, but not before he gets a handsome handshake.December 7, 2018 at 5:26 pm #66970
What about the manufactures taking over? Then if they have a few models not selling which are over the budget limit they could off load them like they did with the XC60 Galaxy etc
Discuss 😉December 7, 2018 at 5:44 pm #66973
That simply won’t work. If it was left to manufacturers then we would just be left with the vehicles they want to shift, resulting in low resale values and a rise in AP.December 7, 2018 at 6:45 pm #66977
“What about the manufactures taking over? Then if they have a few models not selling which are over the budget limit they could off load them like they did with the XC60 Galaxy etc”
Absolutely not and I’ll echo what JS wrote. That would (probably) be the biggest mistake you could make with the scheme. They would raise prices as their primary concerns would be profit foremost.
I shudder just thinking about it…December 7, 2018 at 6:56 pm #66979
Andy, this is hardly a ‘damning report’ in any sense of the word. The scheme has been run well overall and the main (and only) issues were the CEO being overpaid and the scheme being run a little too carefully which resulted in unplanned profits. I’d rather it be ran that way than having to go to the Treasury asking for bailouts.
I’m worried that there’s a lot of white noise around this topic and I hope that some cool-headed and sensible individual looks at this from the Government’s side and keeps away from the vast majority of online sources of information and pseudo-journalism.December 7, 2018 at 7:33 pm #66983
Betts has resigned apparently.December 7, 2018 at 8:30 pm #66987
ATOS who run pip assessments made 26 million profit this year.
So it’s no shock they are making a profit.
But i I do think the bonus sytstem needs looking at.
And they should put out more affordable auto cars on the scheme.December 7, 2018 at 9:33 pm #66998
“ATOS who run pip assessments made 26 million profit this year.”
But…ATOS have absolutely nothing to do with Motability or Motability Operations. That is a different matter entirely and companies are wholly entitled and must make a profit otherwise what’s the point of running a business.December 7, 2018 at 9:36 pm #66999
Rapster its not only the “CEO being overpaid and the scheme being run a little too carefully” That’s the problem with the scheme. The packages of ALL the staff are far to generous, i copied this from the website.
What’s on offer
As a Motability Operations Ltd team member you can expect:
15% non-contributory pension
Generous holiday allowance
Voluntary benefits such as discounted car hire, roadside recovery membership, travel insurance and gym membership
That’s a problem to me, there are people on this scheme saving for three years to afford the AP for their next car and to see what our money is paying for makes me angry.
Thousands of disabled people waiting months to be seen on the NHS, not for these guys, private health care for them. Nothing but the best and were paying for it.
Worried about having enough money to bury yourself? Not for these guys free Life assurance.
Concerned how you will make ends meet when you retire? Not at all 15% non-contributory pension, thank you very much!
Why should there be a bonus for doing the job your paid to do, especially in a business with no competition.
This guy has fleeced millions from us and continuous to do so.
What i want to see is at least one customer on the board to look after our concerns, this person should have a small group of fellow customers who have say, motor industry background maybe another who is /was an accountant another with an expertise in disabilities etc etc. That’s the only way to ensure we are heard and the business is open and run for our good and not for the good of the staff and banks.December 7, 2018 at 9:57 pm #67003
Yes, you’re right, Brydo. I just don’t feel as strongly about it as you and it’s not because I’m apathetic to it.
For what they do at Motability the remuneration and benefits package is well ahead of the industry norm and I don’t even understand why they need to offer such golden packages for staff that do what exactly: man phones, set up new contracts with customers and motor manufacturers, liaise with third parties (RAC, etc), etc? Isn’t that what the majority of car leasing companies do and they don’t offer such attractive packages.
And yes, it is our money paying for it all.
However, I really cannot bring myself to feel that strongly about it. Really, I don’t know why… 🤔
It might be because it’s being looked at now, who knows.December 7, 2018 at 10:07 pm #67004
Maybe it’s because I’m thinking about setting up a disabled male stripper ensemble? I was thinking of approaching you Brydo, as I think you may have what we need…
I feel like there’s a niche that needs filling. I’m going to be the Channing Tatum of the disabled male stripper world!
I’m thinking of the name ‘Wheelchair and Crotch’. (See what I did? 😉)
What d’ya think? You can be 🤠 if you want.December 7, 2018 at 10:22 pm #67005
Should a private company be running such a service at such a big profit it my point.
Thay moneh could be payed out to disabled people instead.
But as I’ve never had a motability car before I’m yet to experience the service I may get
i just feel strongly about pip as I have a very specialist illness and I get an assessment from a so called medical professional who’s never heard of it?
Yet they still make a massive profit
so i maybe have Ave a bigger gripe with pip, plus I was never on the older DLADecember 7, 2018 at 10:23 pm #67006
Apologies for me spelling and grammar I’m mega drugged upDecember 7, 2018 at 10:25 pm #67007
In answer to “Should a private company be running such a service at such a big profit it my point…”, then yes, they should be making a profit. How much is another matter entirely…
What was their turnover for the same period for that part of the business that you’ve shown profit for? Was that net profit or gross?December 7, 2018 at 10:25 pm #67008
No worries, Phil. I gathered that, no need to explain. 👍December 7, 2018 at 11:39 pm #67024
I believe that was gross, even though it’s costs the tax payers motes as host wim on appeal.
Usially beacause as I said the assessor doesn’t know about the condition, so then tries to over rule a consultant or surgeon?
As ir was found out in an internal memo they get £70 for every person they turn down.
Obviously it’s taken off them if the applicant goes on to win on appeal or MR.December 7, 2018 at 11:52 pm #67025
Rapster there was a time, but it’s long gone lol.December 8, 2018 at 12:18 am #67027
Brydo, I’m not even sure I had it before I noticed it was missing! lol
Phil – and that’s where the problem lies; the people they employ to do these assessments, the so-called ‘healthcare professionals’.
I was fine (and am, generally, in all things DWP medical related) with my DLA–>PIP reassessment and got what I expected (Enhanced Mobility and Standard Care – although I wasn’t totally sure I’d get the latter so, like a bonus) but a friend of mine who has MS and is literally unable to walk 3 metres and is unable to dress himself properly let alone cook, clean, wash, etc was found to be illegible for both components…wtf!? He’s worse than I am at mobility by far!
(I’m an ex-motorbike crash survivor, so it’s easy to see my disability with 5,000 X-Rays and 50+ operations.)
So, your only contact with ATOS is via their healthcare professional and depending on who you get you will form an opinion of that company, ATOS in this case, from the way you’ve been treated by their representative. Which sadly, for a lot of people during DLA/PIP reassessment, is a not so positive experience.
As an aside, ATOS is a company based in France and has a relatively good reputation around the World. Go figure.
P.S. If that was the gross figure then the net would’ve been quite a lot lower but as we don’t know the full value of the contract or the turnover for that piece of the business for that time period then it’s gonna make a huge difference if the net profit is 20% of turnover or 1%. Like I say, they have to make a healthy profit otherwise they go out of business or are unable to invest in people or technology as they’re a tech-heavy business.