Motability boss ‘in line for £2m bonus’

THE BOSS of a taxpayer-supported business that supplies cars to people with disabilities is in line for a £2.2m bonus, the Government spending watchdog said.

An inquiry into Motability by the National Audit Office (NAO) also found that customers were charged £390m more than was required in their lease agreements to cover the costs of depreciation.

The scheme, made up of an operations business and two charities, accounts for about 10 per cent of all new cars bought in the UK.

Motability Operations chief executive Mike Betts’ annual pay package of £1.7m was recently described as “totally unacceptable” by the Work and Pensions and Treasury committees.

The NAO revealed that he is in line for a bonus which was worth £1.86m in September and is likely to reach about £2.2m by 2022.

This can be “released at any time” and “may be of interest” to the Commons committees, the watchdog noted.

Only the initial allocations of £258,000 have previously been disclosed.

Under the Motability scheme, an individual’s mobility welfare payments are transferred to Motability Operations in return for a leased car, along with insurance, maintenance and roadside assistance.

The Commons committees said potential rivals cannot compete with the company because it receives substantial tax breaks from the Government that no other firm is entitled to, and does not face any competitive pressure when tendering for the contract to run the scheme.

Responding to the NAO report, the Motability charity said it will “seek improved mechanisms to better influence Motability Operations’ executive remuneration”.