Tatton MP Esther McVey has asked the National Audit Office to investigate the company which provides cars for disabled people after a newspaper reported the Motability Scheme had £2.4 billion of taxpayer’s money in its accounts and was paying eye watering amounts to its executive team.
In her role as Secretary of State for Work and Pensions Ms McVey said she expected money to be used to benefit disabled people not sit in bank accounts or be paid in excessive wages.
Ms McVey made the demands after a national newspaper revealed Motability built up £2.4 billion in surplus over recent years and pays its chief executive £1.7million a year.
Ms McVey said: “I want to see a clearer commitment from Motability to maximise the use of funds to support the mobility and independence of disabled people. The scheme set up in the 1970's has done so much good for so many disabled people, but anyone looking at the size of the reserves and these pay packages would question the direction Motability has taken in allowing this to happen. Motability must listen to the criticisms it has faces and be receptive to change.
“We have seen in so many instances what was deemed correct in the 1970s is not necessarily correct by today’s standards and with the current focus on corporate governance issues and the abuse of public money I have today asked the NAO to give consideration to undertake an investigation into this matter. I would be keen for the NAO to look at how taxpayer’s money is being used by Motability.”
Motability allows disabled people to lease cars, wheelchairs or scooters in return for part of their state disability allowance.
The organisation is an independent commercial FCA regulated business so the pay of its directors was a matter for them, but Ms Mc Vey added “one has to question from the outside whether this is really right.”
That view is also shared by the charity commission who said trustees of Motability may want to “consider the reputational issues raised by the salaries being paid to their commercial partners executives.”
In her previous role as Disability Minister in 2013, Ms McVey summoned the chief executive to answer question about pay and reserves resulting in £175 million being used in transitional support for claimants.