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Another big loss at Motability Operations if you cut out all the BS
https://www.mo.co.uk/media/xviibgvr/motability-operations-annual-report-and-accounts-2025.pdf
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Motability have got itself on the front page of The Daily Telegraph again today, this time the headline reads “Motability boss’s pay soars to £924,000”.
Motability have got itself on the front page of The Daily Telegraph again today, this time the headline reads “Motability boss’s pay soars to £924,000”.
That’s outrageous for a monopoly. However, his pay wouldn’t have ‘soared’ if they were doing badly which, of course, they aren’t.
As with all annual reports, the devil is in the detail. I haven’t had the time (or inclination) to plough through it all, but some important points to consider are;
They made a paper loss in the first half year, but a profit in the second half, so they are now back in profit.
As with the previous year, I strongly suspect that these paper losses are mostly attributable to asset write downs, given that residual values have now eased after the highs generated through the pandemic (when new car supply was low). Their ongoing business operation will still be cash generative as they make a profit on every lease.
It’s important to keep in mind that any bottom line figure is after they have paid for all the gold plated salaries, bonuses and benefits of all their staff (not just the CEO). Again, they have to be making a healthy profit on every lease to be able to do this.
Cash reserves remain abnormally high for a business that does not face the usual risks of companies that face competitive pressures.
In summary, nobody should be in the remotest bit concerned that Motability is in any financial difficulty, because they aren’t. Even if the government (as a result of the 2026 benefits review) changed the eligibility criteria for Motability back to those with physical disabilities only (as many seem to be calling for), and Motability was to lose the 200,000 or so extra customers that they gained when the rules changed a few years ago, they would simply go back to a scheme of around 400,000 customers. Whilst there would undoubtedly need to be some fat trimming (pretty easy to do given where they are starting from), when the scheme was last at this size (not that many years ago) they still made a handsome profit.
So, as Corporal Jones would say “Don’t panic’!
I wonder what car he drives ?
With a £21k per annum car allowance, on top of his near seven figure salary and benefits package, I strongly suspect that he isn’t restricted to the same poor choices as the scheme customers who pay for it!
If I was him I’d go for a fully loaded Bentley Bentayga and still have money left over!
EDIT – I’ve now looked through the report in a bit more detail. The £21k Pa isn’t just for his car. It includes life assurance and private healthcare. The car allowance will form the major part of it though. Hopefully he’s been pressured into getting an EV, albeit a very expensive one 😂
Drive? He spends most of the time being driven.
You mean bending the knee surly or bending over to take a shafting. Or bending both knees with mouth wide open, perhaps all three and then some…
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.Quite interesting:
Mr Miller’s base salary is comparable with chief executives of other bodies which rely on taxpayer funded revenue.
Mark Wild, HS2 chief executive, is paid £600,000, while Anthony Kirby, chief executive of prisons outsourcer Serco, gets £845,000.
Additionally, Capita, which helps to collect the BBC licence fee, pays chief executive Adolfo Hernandez £700,000 in salary.Does it really matter what Mr Miller is paid.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
Does it really matter what Mr Miller is paid.
Not one iota.
Quite interesting: Mr Miller’s base salary is comparable with chief executives of other bodies which rely on taxpayer funded revenue. Mark Wild, HS2 chief executive, is paid £600,000, while Anthony Kirby, chief executive of prisons outsourcer Serco, gets £845,000. Additionally, Capita, which helps to collect the BBC licence fee, pays chief executive Adolfo Hernandez £700,000 in salary.
I appreciate that two wrongs don’t make a right, but HS2 and Serco are both disaster areas and Motability is far better run than either of them!
These type of complaining tickles me.
Find out what the Cheif Executive of your local councils are paid, find out how much your trades union leaders are paid, all in the hundreds of thousands whilst either providing a reduced service or a reduction in membership.
The CEO’s pay is on par with the sector, HOWEVER he did not defend the scheme nor the disabled customers’ right to choice and collapsed under the slightest (false) accusations about the scheme. Other agencies’ and journalists did. For that reason, its scandalous he is in post.
The CEO’s pay is on par with the sector, HOWEVER he did not defend the scheme nor the disabled customers’ right to choice and collapsed under the slightest (false) accusations about the scheme. Other agencies’ and journalists did. For that reason, its scandalous he is in post.
What did actually expect him to do, you still have a scheme, unfortunately it is watered down, the worst case scenario the scheme could have lost VAT exemption in it entirety, as from July 2026 it is applicable to AP.
Lets see what 2026, the automotive industry needs the Mobility scheme to balance their production line and outgoing models, we may see little or no real changes to the AP.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
The CEO’s pay is on par with the sector, HOWEVER he did not defend the scheme nor the disabled customers’ right to choice and collapsed under the slightest (false) accusations about the scheme. Other agencies’ and journalists did. For that reason, its scandalous he is in post.
What did actually expect him to do, you still have a scheme, unfortunately it is watered down, the worst case scenario the scheme could have lost VAT exemption in it entirety, as from July 2026 it is applicable to AP. Lets see what 2026, the automotive industry needs the Mobility scheme to balance their production line and outgoing models, we may see little or no real changes to the AP.
To dispel the myths, to stand up for user’s choice of vehicles, to not remove cars which are NOT premium; you know, just do his job. By going along with falsely based public mood, he’s undermined the scheme and given credibility to the lies and myths. Not fit for the job.
Perhaps he single-handedly saved the Scheme. Perhaps the Government came to shut the Scheme down and the glorious CEO cunningly and cleverly convinced them to the compromise that we see today.
Who knows.
The CEO’s pay is on par with the sector, HOWEVER he did not defend the scheme nor the disabled customers’ right to choice and collapsed under the slightest (false) accusations about the scheme. Other agencies’ and journalists did. For that reason, its scandalous he is in post.
What did actually expect him to do, you still have a scheme, unfortunately it is watered down, the worst case scenario the scheme could have lost VAT exemption in it entirety, as from July 2026 it is applicable to AP. Lets see what 2026, the automotive industry needs the Mobility scheme to balance their production line and outgoing models, we may see little or no real changes to the AP.
Whilst I maintain that Motability Operations pay and benefits are excessive for a monopoly (at all levels, not just the CEO), which sits uneasy with me as it is all paid for by disabled people, many of whom have very low means, I agree that it could have been worse.
I don’t doubt that this economically illiterate government could well have been looking to remove the VAT exemption from the whole scheme, and the CEO and CFO would have had to explain to them that doing this could have resulted in the scheme collapsing, as the block VAT exemption is what makes it very competitive against commercial schemes that don’t have all the restrictions of choice.
However, I don’t share your optimism that APs may be unaffected by the changes. I believe that Motability Operations themselves have already said that the average AP is likely to rise by around £400 as a result of the VAT and IPT additions. As always with ‘averages’, some will be affected by very little (cars with zero or very low APs) whilst others will be affected by far more. A car with a £4k AP today (not uncommon) could reach £5k in 6 months time.
Hopefully some of the scheme changes (such as reducing the 60k mileage allowance) will help a tiny bit in offsetting some of these extra costs, but we have seen a steady rise in APs over the past few years, so even that may be offset by a continuing upward trajectory.
Unfortunately, it’s going to be a long 6 months until all is revealed, but even that won’t be the end of it as this will soon be followed by the Timms review, which could well impact Motability by a far greater degree than last months budget.
Reading through the financials:
Losses this year £158.8m (564.6 last year) of which the first half of financial year saw £144.6m loss. Second half lost only £14.2m and that also suggests that Motability Operations will be profitable from the start of their next financial year.
GAINS on disposal £5.6m in a total sales value of £2.2b. That’s pretty much dead on depreciation calculations. When you’re selling billions worth of assets a change of only single figure millions is a fraction of 1% where most accounting practices would accept somewhere nearer 2-5% error margin on something as volatile as disposal of depreciated assets.
It’s worth noting that they claim insurance pressures were a 39% increase in premiums for the fleet, that’s a huge jump and is why they’re increasing excesses and other cost saving measures are/will be implemented.
Available vehicles with nil AP 2024 108, 2025 52, although it’s worth noting there was a considerable increase from 2022/3 averaging 73 each year.
In all, Motability Operations are in a stable and improving position. Investors would be happy to see those numbers. However, with all the upcoming changes, it’ll be interesting to see how these will look next year.
I'm Autistic, if I say something you find offensive, please let me know, I can guarantee it was unintentional.
I'll try to give my honest opinion but am always open to learning.Mark
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