They accuse Motability for maintaining £2.4bn of financial reserves, which they argue is unnecessary and out of proportion to the potential risks faced by the scheme. “Motability provides an extremely valuable service to disabled people. The report points out that, as a state-supported monopoly, the scheme faces no competition, no shareholder pressure or credit risks. It calls on the scheme to take steps to reduce reserves by cutting prices to customers or making higher donations to charities. Following her intervention, she is pleased agreement has now been secured for the NAO to look into this.”

Source: The Guardian May 21, 2018 04:52 UTC