Following evidence in Parliament on the management and finances of disability transport company Motability—which leases cars to disabled people, funded by their PIP disability benefit payments—and its charitable counterpart, the Chairs of the Work and Pensions and Treasury Committees have requested a series of company papers to investigate the organisation's governance and finances further, and have also written to HMRC to query Motability's tax exemptions and the National Audit Office (NAO) asking it to open investigations into its finances.
£2.4bn in reserve to cover 'risk'
Published alongside the new requests today is correspondence between Treasury Sub-Committee Chair John Mann and the Financial Conduct Authority (FCA), following an Urgent Question in the House by Mr Mann on reports of the levels of Motability's cash reserves and executive pay.
FCA Chief Executive Andrew Bailey states in his reply "You asked whether the Financial Conduct Authority would expect an organisation like Motability to hold £2.4bn in reserve to cover risk. The simple answer is no."
The Committees have set a deadline of 16 March for the new information and papers they have requested.