The chief executive of the Motability scheme has received a significant pay rise, prompting renewed criticism of the government-backed programme that allows disabled people to lease new cars, including premium models.
Andrew Miller, 59, took home £924,000 in total pay this year, up from £748,000 the previous year. The increase was largely driven by a £300,000 bonus, alongside a nine per cent rise in his base salary to more than £500,000. His remuneration package also included a £21,000 car allowance and private medical insurance, according to newly published accounts.
The pay increase comes during a period of controversy for Motability, with critics questioning whether the scheme offers access to luxury vehicles that many working families could not afford. The charity enables people receiving disability benefits to exchange their mobility allowance for a leased car, which is exempt from VAT and insurance premium tax.
Motability’s latest accounts show revenues from vehicle rentals rose by 25 per cent to £3.5 billion, driven by growing demand from people claiming Personal Independence Payment (PIP). More than 890,000 people now use the scheme, which accounts for around one in six new car sales in the UK.
The proportion of Motability-funded car sales varies by region, with Wales recording the highest share at 33 per cent, followed by the North East at 26 per cent and London at 24 per cent.
Concerns have previously been raised by senior politicians that the scheme was offering what was described as a “premium motoring experience subsidised by the taxpayer”. Figures showed that 85 per cent of claimants paid extra to upgrade to higher-specification or luxury vehicles.
In response, Motability has confirmed it will stop offering certain premium brands. Customers currently driving BMW or Mercedes models will need to choose a different manufacturer when they next change their vehicle. The organisation has also committed to increasing its use of UK-built cars, with a target for half of all leased vehicles to be British-made by 2035.
While the Department for Work and Pensions does not directly fund Motability, the scheme allows claimants to use their mobility allowance to lease a vehicle. Founded in 1977 as a government-backed charity, Motability plays a major role in the UK car market.
Mr Miller previously led the Guardian Media Group and oversaw its ownership of Auto Trader. He remains active in the media sector, including a role as a non-executive director at Channel 4.
A Motability Operations spokesperson said the organisation’s priority was to support disabled people’s independence while managing rising costs and upcoming tax changes. They added that executive pay reflects the experience required to lead a multi-billion-pound organisation through significant change, while continuing to deliver value for disabled customers and the taxpayer.
