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Concern over Motability Operations’ ‘excessive profits’ from vehicles for disabled raised with Scottish ministers
Motorists with disabilities are being overcharged for vehicle adaptions because of “excessive profits” by the company involved, disability advisers have told the Scottish Government.
The Mobility and Access Committee for Scotland (Macs), the official advisory body, has raised its “deep concern” over Motability Operations as control of the social security benefits used by people with disabilities to pay for such vehicles switches from the UK to Scottish Government.
It is worried about the “excessive profits generated from disabled people’s support payments” for providing cars, powered wheelchairs and mobility scooters to 70,000 people in Scotland.One industry source said they could be paying £1,000 more than they needed to.
A spokesperson for Macs said “We have raised concerns around the value for money aspects of the current Motability scheme with the Scottish Government, particularly as disability payments devolve and the Scottish Government’s accessible vehicles and equipment scheme [of which Motability is an accredited supplier] evolves.
“As a result of surplus profits, the Motability charity has accumulated funds of £1.4 billion, making it one of the largest charities in the UK.
“Virtually all of these funds are derived from collecting more money from disabled people’s benefits than was needed to operate the scheme.”
Macs said Motability Operations chief executive Andrew Miller had refused its request to return future excess profits to customers.He told the committee there would be further significant donations to the charity following the latest annual report for the year to September, which showed profits of nearly £560 million.
Macs said the company had also refused its call to launch a “thorough value for money audit of the entire operation” to significantly cut costs and reduce the cost of customer leases.However in a joint statement, Motability and Motability Operations said they provided “excellent value for money” to disabled people.
It spokesperson said: “The long-term sustainability and affordability of the Motability scheme relies on maintaining a stable capital position.
“A large portion of the funds needed to run the Motability car scheme come from the sale of customer cars at the end of their lease.“Used car prices are at a temporary all-time high, inflated by global supply chain issues delaying the availability of new cars.
“This global trend has affected the entire automotive industry and all leasing companies, and resulted in an unplanned increase in 2021 profits.
“The scheme invests profits to support customers and disabled people in a number of ways, including support for pricing, customer service enhancements, customer payments such as the £600 good condition bonus, and donations to Motability, the charity.”
The spokesperson said in December, Motability Operations had committed £180m in “direct rebates and support for customers”, £300m to help customers witch to electric vehicles, and donated £170m to Motability, the charity, “to support Motability’s vision that disabled people should not be disadvantaged due to poor access to transportation”.The donation would be used to increase spending on scheme-related grants and expand support for other organisations and charities over the next three years.
“This will enable the charity to keep pace with increased demand for financial help and help disabled people in areas where research and insight has shown opportunities to have the greatest impact.”From The Scotsman Online
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“One industry source said they could be paying £1,000 more than they needed to”. I find this part very interesting!
It was never Motability Operations job to take the benefit money off disabled people and give it to a charity!
The Scottish Government are entitled to take the operation of the scheme away from Motability, and they should.
It’s good to see that the spotlight is turning on Motability, even if only in Scotland. Whilst it is understandable that there will be some temporary reductions in choice due to the chip shortage, the current AP prices are inexcusable and pure profiteering. Retail price increases cannot be used as an excuse, given that the percentage increase in retail prices is but a fraction of the percentage increase in AP’s.
We all welcome the £60 insurance rebate due to lower claims, but where’s the £2,000 per customer rebate to reflect higher resale prices of returned cars? I suspect that the Christmas bonuses at Motability Operations this year will dwarf those that were given last year.
However, we must manage our expectations. A U.K. Government sponsored review into Motability a few years ago identified excess profits, AP’s being too high (and that was well before the massive hikes of the last year), lack of choice – particularly larger vehicles and other issues. Of the many recommendations made, only one has been implemented and that is to try to encourage the two-thirds of people who are eligible to join the scheme but don’t (hence the tv adverts). So the one thing that would benefit Motability was done versus none of the things that would benefit the Motability customers!
Sadly, talking about and raising concerns seems to achieve nothing. Where Scotland might be able to help is by breaking the Motability Operations monopoly there and letting other entrants into the market. You can be sure that new entrants won’t employ staff on the gold plated salary and benefits package that Motability Operations pays all its staff, which would result in lower operating costs and therefore lower AP’s.
“Used car prices are at a temporary all-time high, inflated by global supply chain issues delaying the availability of new cars.
“This global trend has affected the entire automotive industry and all leasing companies, and resulted in an unplanned increase in 2021 profits.But they chose last year to start charging for adaptations that were previously free! The government needs to have a serious look at Motability!
It’s beyond all reasonable doubt that we are being taken for a ride, or if you like, kicked in the whatsits while were down and can’t defender ourselves, when it comes to adaptions. Lets face it what do they think, we have adaption because we love having steel bars controlling the brake, hoists and remote controls clogging up our cars because we love them and what’s more we don’t buy into the extra luxury cost of automatic gearboxes because were lazy.
It sort of sums it up when Motability quietly removed the option of taking your 3 year old hoist out of your car and putting it in the new one for free then defend themselves by saying you can transfer but you would have to pay the installer for the cost and the installers tell us it would be just cheaper to buy a new hoist at £590.
As for grants, forget it as they told me I would not get a grant for a new hoist on the grounds that my current hoist is in good condition and meets my needs, yes it is in good condition and meets my needs but its in my current car with an extortionate but secret cost to transfer to the new one. Talk about being thrown to the Lions and leaving us to deal with adaptions installers who have a closed market and charge what they like as I’m sure as night follows day that Motability would not let us go to an unapproved installer to get the job done for a reasonable cost.
Motability know they got customers who require adaptions to their cars over a barrel that makes it hard for us to go elsewhere for a car.
I’ve said enough so won’t move onto the great AP scam for now.
Nothing like a bit of competition to sharpen the pencil.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.not a pencil they need its a rubber to adjust those AP’s.
Lets add this all up:
(a) Matt
“One industry source said they could be paying £1,000 more than they needed to”. I find this part very interesting!
(b) Glos Guy
We all welcome the £60 insurance rebate due to lower claims, but where’s the £2,000 per customer rebate to reflect higher resale prices of returned cars? I suspect that the Christmas bonuses at Motability Operations this year will dwarf those that were given last year.
That £3,000 extra per Motability vehicle
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
@ChrisK You make several very valid points particularly about hoist transfers costs, have you considered getting in touch with Watchdog.
Team member Nikki Fox is a mobility scooter user and should be fully aware of the costs and pitfalls of lugging one around, maybe she could present a good case re, getting that particular injustice sorted.
Hi garry
I don’t think I would be one for getting in touch with the BBC in view of how the general public come over in public on non disability forums in thinking were all spongers and should be happy with what we got.
I’ve seen some of the BBC stuff with disabled reporter tell us how wonderful life is travelling abroad without a care in the World with regards to disabled access as they say there always folk willing to help, yeah right, when your working for the BBC and travelling around with a healthy camera crew to help you up the odd unforeseen flight of stairs on your travel.
That’s just my view but that’s how I see folk in the media these days, disabled or not living in a perfect well paid World with all the help they need should it be required.
I’ve become very untrustworthy of anyone in authority including my local useless MP since I was declined PIP 4 years ago and had to go to tribunal and was the worst nightmare experience of my 70 years on this planet so these days I’m just a keyboard worrier and keep myself to myself though I will write the odd letter of complaint on a person to person personal level.
Hi Chris
Fair comments.
Regarding the extra cost of automatic cars on the scheme.
A simple solution would be if the main driver is the disabled person then an automatic gearbox should be offered as a free upgrade/option and be the same AP as the manual version/spec if it is available on the scheme at a lower price.
This, this, and this again!
Hi Chris Fair comments. Regarding the extra cost of automatic cars on the scheme. A simple solution would be if the main driver is the disabled person then an automatic gearbox should be offered as a free upgrade/option and be the same AP as the manual version/spec if it is available on the scheme at a lower price.
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