Our vision is that no disabled person shall be disadvantaged due to poor access to transportation.
Oversight of the Motability Scheme and the Scheme itself continue to be the main method by which the Charity strives to achieve the vision, although an increasing element of our grant-making is beyond the Scheme and we are also investing steadily in our Innovation activities.
In 2019/20, we committed more than £71 million in direct grant-making to support more than 25,000 disabled beneficiaries with the financial cost of their transportation needs.
To help us achieve our vision and objective, Motability:
- Sets the strategic policies and direction of the Motability Scheme and oversees its performance to ensure it meets the transportation needs of disabled people.
- Uses charitable funds to support beneficiaries with the cost of their transportation needs.
- Raises awareness of Motability, the Charity, and the Motability Scheme among potential beneficiaries and customers, and the people who advise them.
- Constantly looks for and develops new solutions to meet the evolving transportation needs of disabled people.
- Provides the highest level of customer service across the UK, underpinned by a strong infrastructure and empathetic culture.
The Motability Scheme
The Scheme enables a person in receipt of a state provided mobility allowance to use all or part of their allowance to lease a new vehicle with insurance, road tax, servicing, tyres and breakdown cover all included. Motability, the Charity sets the strategic policies and direction of the Motability Scheme, and oversees its performance to ensure that it continues to meet the needs of disabled people. The day-to-day running of the Scheme is delivered by an independent commercial company, Motability Operations, under an exclusive contract with Motability.
Motability Charitable Object
As a charity, Motability must always act within its charitable object in the best interests of its beneficiaries, who are all disabled people in need of assistance with their personal transportation. Motability must account publicly for its actions, reporting on its charitable activity and the resulting public benefit. This is part of the Motability charitable proposition. A critical feature of the proposition is that any funds donated to Motability can be used to support charitable programmes for all disabled people, within the Charity’s objects, not just customers of the Scheme. Those who are eligible for the Scheme have total choice in whether they join the Scheme as a customer or not. If they so choose they accept the Motability proposition. The Motability proposition must be transparent to all Scheme customers and the wider public, particularly the charitable work of Motability beyond the Scheme, largely through its individual and special grant-making.
About Motability Operations Ltd
Motability Operations has to fund the cost of more than 640,000 vehicles on the Motability Scheme to a value of £7.8 billion as at 30 September 2020 (as per Motability Operations’ audited accounts), and needs to borrow money in order to do so. Before any investor lends money to any company, they need to be assured it is a healthy business to have the confidence the loan and the interest will be repaid. Motability Operations must maintain sufficient capital for its activities, keeping the vehicle fleet on the road, to attain a strong credit rating to lower the cost of borrowing, and to ensure access to the capital markets, underpinning the Scheme’s value for money. It is also important to us that current Scheme customers are protected from economic downturns or market shocks unless there are exceptional circumstances. Therefore, Motability Operations aims for a modest return on its capital asset base each year. This return figure, and the level of capital reserves, are kept under review.
The provision of reserves to protect current customers from the excesses of volatile and potentially price-increasing market forces is important, as noted previously. However, in more buoyant markets, financial performance sometimes exceeds forecast returns. Motability Operations does not pay a dividend to its shareholders. Any profits are reinvested for the benefit of current and future Scheme customers through improved services (online customer accounts for example); added to reserves if risk assessment deems this prudent to further protect current and future customers; or are donated to Motability to help address the transportation needs of all people with disabilities. Motability and Motability Operations consult on these matters.