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The Board of Motability Operations Group plc is pleased to welcome its new Chairman, The Right Honourable Sir Stephen O’Brien, who started in his new role on 1 April.
Sir Stephen, who joined the Board as Chairman-designate in January, has a distinguished track record as a Member of Parliament and former United Nations Under-Secretary-General for Humanitarian Affairs & Emergency Relief Coordinator. Prior to this role, whilst MP for Eddisbury, he served as Permanent Under-Secretary of State for International Development in the Coalition Government, as well as in a series of shadow ministerial roles before that.
Before entering politics, Sir Stephen was International Director and Group Secretary of FTSE 100 listed global building materials company, Redland plc, and before that a Solicitor with Freshfields in the City of London. He is a Privy Counsellor and was knighted in 2017 for his achievements and commitments to humanitarian action, global health and international development.
Sir Stephen said: ‘I am delighted to be joining Motability Operations Group plc. This is an excellent company delivering first class service to meet the needs of our 630,000 customers.
‘I look forward to contributing to the Scheme’s further success, and working with the whole Board to deliver the strategy.’
The Board of Motability Operations Group plc also paid tribute to the outgoing Chairman, Neil Johnson, who retired in March, for his nearly 18 years’ service to the Company. On behalf of the Board, Sir Stephen said: ‘Neil guided the transformation of the business into a successful professional and commercial operation, and the Board has benefited greatly from his skills and experience. We wish him well in his next steps.’
Motability Operations today announces its response to the National Audit Office’s (NAO) report into the Motability Scheme (Scheme). This coincided with the publication of Motability Operations’ Annual Report and Accounts 2018 and an update on its management team.
Read the full statement here Will download a resource(PDF 227KB)
Motability Operations Group plc, the company which delivers the Motability Scheme, is today making a charitable donation of £400m to the charity Motability, helping the charity to further improve the mobility of disabled people. Motability Operations’ Board has approved this donation in anticipation of delivering a strong financial outturn this year; the result of an excellent operating performance, and a windfall from the exceptionally buoyant used-car market. This donation is one of a series of charitable donations made over the last 10 years. The scale of this payment has been made possible through strong operational and financial performance from the company in 2017/18, making the donation affordable, without diluting capital ratios, or compromising the reserves (which part-fund vehicle purchases, and are the essential shock absorber to keep the Scheme protected). The company has additionally invested £180m in customer support for Motability Scheme customers in 2017/18, including free vehicle adaptations and a good condition bonus, payable to customers at the end of their vehicle lease. Motability Operations will publish its 2017/18 Accounts in December 2018. Motability Scheme Chairman, Lord Sterling, has made a statement regarding the donation at Motability's AGM today. You can read this here .
Motability Scheme Chairman, Lord Sterling, has made a statement regarding the National Audit Office. You can read it hereOpens in new window .
There have been a number of recent inaccurate statements made about Motability and Motability Operations Group Plc, both in the press and in discussions in Parliament. Although public accountability and transparency have always been taken as a given by Motability and Motability Operations Group Plc, the Scheme is of such importance to disabled people and their families, that it is essential that any discussion about it is based on fact. Therefore both Motability and Motability Operations Group Plc have separately written to the Secretary of State for Work and Pensions and to others who have expressed an interest in these matters, to correct the inaccuracies and misunderstandings that have been stated.
Copies of those letters can be seen here:
Motability Letter to Secretary of State for Work and Pensions Will download a resource(PDF 700KB)
MO Group Plc Letter to Secretary of State for Work and Pensions Will download a resource(PDF 336KB)
Motability Operations Group plc (MOG) is a commercial company set up solely to deliver the Motability scheme on the ground, under contract to the Motability charity. MOG has grown over forty years to become one of the largest and most successful car leasing businesses in Europe. It is owned by a group of UK banks, who have supported the scheme since its inception. It does not have charitable status and does not receive government funding. Last year, MOG had revenues of £4.2bn and pre-tax profits of £258m, which were invested back into the business. The company’s reserves of £2.4bn are not held in cash but are entirely invested in its fleet of around 630,000 cars. This provides a capital base that protects the business against risk, notably in relation to price volatility in the used car market. Management is paid for performance, according to targets set by the Board and agreed with shareholders.
Moody’s Investors Service has upgraded the long-term issuer and senior unsecured ratings of Motability Operations Group plc to A1 stable from A2 positive.
The ratings upgrade reflects MO’s continued capital build (which protects the business from the risks it faces – in particular exposure to shocks in residual values), reinforced by improved risk controls and an enhanced value proposition for customers.
Please click here for Moody’s full press release.Opens in new window
The winners of Motability’s latest annual Dealer Awards have been announced. The Awards recognise dealerships from across the UK for providing outstanding customer service.
Winning and commended dealers include:
The Dealer Awards programme recognises dealers and dealer groups across eight categories and is designed to reward best practice and ensure all Motability customers receive exemplary customer service across the dealer network. The awards are judged on how a dealer delivers the Scheme to customers, and is assessed through customer feedback, reviews of their Motability performance and levels of engagement.
Peter Wilson, General Manager – Dealer Relations at Motability Operations, said:
“We are really pleased to be able to reward our outstanding groups, dealers and specialists with another round of Motability Dealer Awards, recognising the great service they provided in 2014. The dealer network is the ‘face’ of the Motability Scheme and the Awards are a great way for us to thank them for providing consistently positive customer service, highlighting those who are doing it well and encouraging others to do the same. Congratulations to all the winning and commended groups, dealers and specialists.”
Every year, Motability Operations hosts its summer programme of One Big Day events around the country, beginning with its two-day, flagship show, ‘The Big Event’.
The events offer disabled people and their families the chance to find out more about the range of carsOpens in new window , Wheelchair Accessible Vehicles (WAVs)Opens in new window , scooters and powered wheelchairsOpens in new window available on the Scheme.
The 2015 One Big Day programme of events will be held from May to September in Manchester, Yorkshire, Exeter, Peterborough and Warwickshire. The Big Event, the flagship show held at EventCity in Manchester, will kick off the programme and showcase the UK’s largest display of vehicles available on the Motability Scheme, with over 100 cars, 40 scooters and powered wheelchairs and 25 WAVs to view.
Visitors will be able to get a feel of adapted and non-adapted cars by taking a test drive with a professional driving instructor to ensure the vehicle meets their mobility needs. The adapted test drive cars will be fitted with a wide range of different driving adaptationsOpens in new window including hand controls, steering wheel balls, electronic brakes and left foot accelerators.
Help and advice is also available from a team of friendly Motability advisors and Scheme partners such as Kwik Fit, RAC and RSA Motability, as well as representatives from The Forum of Mobility CentresOpens in new window and Disabled Motoring UKOpens in new window .
The events are a fun way for visitors to find out more about the Motability Scheme and enjoy a great day out with the family. The children’s area will keep the kids entertained with free face painting, balloon modelling and the chance to meet the Motability mascot, Billy the Bear!
All the One Big day events are free to attend, including free parking, and are held entirely indoors. Visitors are also treated to a free cup of tea of coffee when they arrive.
Luke Snowden, One Big Day event manager at Motability Operations, said: “We created the One Big Day events in 2007 and have seen them continue to grow every year, attracting over 21,000 visitors in 2014. It’s great to see so many customers benefitting from the events and enjoying being able to explore all of their motoring options under one roof, while having a fun day out too.” Watch our video to find out more about The Big Event and the One Big DaysOpens in new window
2015 Event Dates
Over 3,000 dealers have attended our recent national Business Briefings. The 25 events in nine locations helped update dealers on all aspects of the Motability Scheme.
The Business Briefings were designed to help dealers understand the Motability market and the needs of their customers in order to deliver exceptional customer service. Attendees also received updates about latest developments to the Scheme and the newest enhancements to the dealer support programme.
These events present an opportunity for dealers to interact with Motability advisors face to face and have all their questions answered. Dealers who attended the events during October and November 2014 spoke positively about them.
One dealer said: "Very good event – short, sharp and focussed. I’ve learnt some useful things and got some ideas for how to improve our focus on Motability customers."
Peter Wilson – General Manager, Dealer Relations said: "These are the first Business Briefing sessions we’ve held since early 2013 and it’s great to be able to meet our dealers face-to-face and share what’s new for 2015. The response has been really good and we’ve received some incredible feedback."
Motability Operations is pleased to announce that it has renewed its contract with RSA to provide motor insurance to the Motability Scheme. This new contract extends the long-term relationship between the two companies and continues the strong, sustainable partnership between RSA and Motability Operations. The new contract took effect from 1 October 2013 for an initial five years.
Under the new arrangements RSA will continue as insurer, but will share premium exposure with Motability Operations via Motability Operations’ reinsurance captive. The captive’s net exposure will then be contained through the placement of a conservatively structured reinsurance programme into the reinsurance market.
RSA will continue to provide the full range of customer-facing activities through its dedicated Motability unit in Liverpool, ensuring seamless continuity of service for customers.
The new insurance arrangements with RSA are common for large fleets and will deliver significant benefits to the Scheme:
Customer Service: RSA have been the insurance suppliers to the Scheme for many years and the new deal will ensure continuity of our customers’ ‘worry free’ claims management experience for many more years into the future. There will be no change visible to our customers.
Financial: The financial model that will underpin the new arrangements will bring with it significant financial benefits to the Scheme and so further support the sustainability and affordability of our offering to customers.
Supply Risk: Under the new contractual arrangements, there will be a conservatively structured reinsurance programme that will spread insurance supply amongst a number of highly rated organisations and in so doing diversify risk and ensure stability of insurance provision into the future.
As part of its welfare reform programme, the Government has started to replace Disability Living Allowance (DLA) with a new benefit called Personal Independence Payment (PIP) for disabled people aged between 16 and 64.
Most Motability customers currently use their DLA to pay for their vehicle leases. Like DLA, PIP has two components:
Each component has two rates of payment:
You are able to lease a Motability car by using the Enhanced Rate of the Mobility Component of PIP, which is set at the same amount as the Higher Rate Mobility Component of DLA. Like DLA, PIP is not means-tested or taxable, and can be paid whether the claimant is working or not.
PIP will replace DLA for disabled people aged between 16 and 64, even if they currently have an ‘indefinite’ or ‘lifetime’ DLA award.
The Department for Work and Pensions (DWP) awards PIP based upon their assessment of an individual’s ability to carry out a range of everyday activities. The eligibility criteria for PIP is different from those for DLA today and existing DLA recipients will not be automatically transferred across to PIP. This means that even if you already receive DLA, you will need to make a claim for the new benefit when the DWP invites you to do so at some point between now and 2018. The DWP will then assess your claim and decide what level of PIP benefit you should receive.
Since October 2013, children reaching the age of 16 and existing DLA recipients whose fixed term DLA award ends, or who report a change in their condition, have started to be invited to apply for PIP. From October 2015, all other DLA recipients including those with 'indefinite' or 'lifetime' DLA awards will be invited to apply for PIP. The process of reassessing current DLA recipients should be complete by 2018.
If the DWP invite you to apply for PIP, you will need to make a claim for the new PIP benefit within four weeks of being invited to do so. If you do not make a claim for PIP, the DWP will suspend and then stop your DLA payments completely. It is very important that you do not ignore any communications from the DWP; please read any letters you receive carefully and respond with any deadlines.
The changes explained above will apply to England, Wales and Scotland. The devolved administration in Northern Ireland is working with the DWP to consider how changes will be introduced in Northern Ireland.
The Motability Scheme will work with PIP in the same way as it does with DLA. Motability will continue to lease cars, powered wheelchairs and scooters to disabled people who receive either:
If you are an existing DLA recipient who is awarded the Enhanced Rate of the Mobility Component of PIP, then your Motability lease will continue as you move from DLA to PIP.
If you are an existing DLA recipient who has not received the Enhanced Rate of the Mobility Component of PIP, you will not be eligible to use the Motability Scheme. If this happens:
Customers will be able to appeal to the DWP if they disagree with the decision. However, DWP will not continue to make DLA payments while an appeal is being processed and so Motability will not be able to leave the vehicle with you. If the appeal is successful, you will of course be eligible to re-join the Scheme.
You do not need to make a claim for PIP until you are contacted by the DWP at some point between now and 2018. It’s important that the Department for Work and Pensions has your up to date contact details. If your details have changed, you can let them know by calling 03457 123 456.
More information about the DWP’s plans for DLA and PIP can be found on the Government’s website: https://www.gov.uk/personal-independence-paymentOpens in new window
Disability Rights UK (an independent charity) has produced a guide to claiming PIP Will download a resource(PDF 1MB) , you can find this and other factsheets covering DLA and PIP at: www.disabilityrightsuk.org/how-we-can-help/benefits-information/factsheets/factsheets-alphabetical-orderOpens in new window
A recent assessment by the Institute of Customer Services (ICS) has awarded Motability Operations the ‘ServiceMark’ Accreditation.
ServiceMark is a national standard which recognises an organisation’s achievement in customer service. It’s based on customer satisfaction feedback and employee assessment. More than 30 employees were interviewed and observed and our processes were also closely reviewed.
Lisa Witherington, Head of Customer Services said: "We are delighted with this departmental wide endorsement this accreditation has given us, which has benchmarked our service provision on an external, professional level". The ServiceMark is a three year accreditation with regular reviews to ensure we continue delivering the best possible levels of service. We will be re-assessed again during 2015.
ICSOpens in new window is an independent, not-for-profit organisation whose membership consists of high-performing customer service companies. They work to promote excellent customer service within the industry. The Institute has over 400 members, of which only 10 per cent have successfully achieved the ServiceMark.
If you’d like to find out more about Motability Operations and the Scheme, feel free to get in touch.
Trust is considered to be key in enabling current and potential customers to make an informed and confident choice of a mobility solution that meets their disability needs and this in turn, strengthens customer advocacy of the Scheme.
Whether customers decide to renew their business at the end of the lease is a key measure of our success. During the year to September 2018 this was maintained at >91%, compared with a KPI target of 85%.
Existing customers are the Scheme’s biggest advocates, with over 98% saying that they would recommend the Scheme to others.
© Motability Operations Limited 2016
Motability Operations Limited is authorised and regulated by the Financial Conduct Authority under reference number 735390. Please see our Terms and Conditions for more information.