The firm that provides Motability cars to disabled Scots on benefits has been accused of overcharging after profits increased to almost £1billion in a single year.
Linda Bamford, an influential adviser to the Scottish Government on disabled rights, is demanding that Motability Operations hands back a percentage of its profits to its 60,000 Scottish clients.
Motability Operations Ltd runs the Motability Scheme intended to enable disabled people, their families and their carers to lease a new car, scooter or powered wheelchair, using their disability benefit.
Bamford, convenor of the Mobility and Access Committee for Scotland, (MACS) says it is wrong that a private company can make such riches from people’s benefits.
She tweeted: “This profiteering from disabled people’s support payments needs to stop. £100million per month profits is obscene. Totally immoral. I’m sure the intention of the scheme was not this level of profiteering from disabled people.”
MACS, which meets regularly with government ministers and officials, had earlier used its Twitter feed to state its dismay at the profits, which come from operations UK-wide.
The group also slammed Motability Operations for consistently refusing to pay back profits to customers, instead pumping up the massive reserve coffers of its partner Motability charity.
MACS said: “We are very disappointed to see another huge profit – £922.9 million – announced in the latest Annual Report by @MotabilityOps.
“The company also donated a further £200million to the Motability charity – already one of the biggest in the UK. Motability is a vital scheme for more than 60,000 people in Scotland, but these profits – derived from disabled people’s benefits – can’t be justified, especially in view of the cost of living crisis.
“We want the company to return excess funds to customers, not add to reserves or donate to the charity.”
MACS also lamented the huge profits boost that will arise from Motability picking up the 10.1 per cent inflationary rise on benefit allocation – which is incorporated into their fees.
MACS added: “And while many disability benefits will rise by 10.1 per cent for inflation, it’s not customers but Motability who will benefit, if you are on the scheme. We’ve made our views clear to Scottish Ministers.
"We’re also working with Scottish Government officials to make the scheme as fair as possible and with more choice for customers in Scotland.”
The Scottish Government has already made its distaste at the profits made by Motability Ops, which held a monopoly on the provision of cars.
A new scheme is seeking rival bids to bring better value for money. The storm first arose last year, after control of social security mobility benefits were switched from Westminster to Holyrood.
Last year’s profits for Motability Ops were £560 million – which were deemed to be outrageous before shooting upwards dramatically in 2022. Motability Ops is largest fleet operator in Europe and the largest supplier of used cars.
It operates by giving three-year subsidised lease deals to those who qualify via the UK benefits system. Cash comes direct from the DWP. It iss owned by four major banks – Barclays, Lloyds TSB, HSBC and the Royal Bank of Scotland.
A spokesperson for the Scottish Government said: “We note the significant profit made by Motability and their intention to utilise this to support disabled people.
"Tackling the current cost of living crisis requires a collective response and we ask our partners, including Motability, to do everything they can to support disabled people in Scotland.
“It is vital that disabled people in Scotland have access to the vehicles and mobility equipment they need.”
The spokesperson added: “The Scottish Government’s Accessible Vehicles and Equipment Scheme is designed to encourage more than one provider, to give disabled people a meaningful choice, ensuring value for money and a fair deal. The scheme will open to additional suppliers in January 2023 and will do so again at regular intervals.”
Labour MSP Pam Duncan Glancy, who uses a wheelchair, hit out, saying: “We are in the midst of a cost-of-living crisis, we should be doing everything possible to ease the financial burden on people, especially those who are already disproportionately affected by poverty and inequality, instead they are being fleeced.”
A Motability Operations spokesperson said: “We agree entirely with the principle of returning profits to customers. 100 per cent of our profits are used to keep disabled people mobile now. In the future our donation to Motability will provide continued financial stability for the charity and enable them to continue to help disabled people with their mobility.”
The spokesperson said investment was keeping lease prices on average 45 per cent cheaper than alternatives for disabled motorists.
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