The economic benefits, organisational structure and governance of the motability scheme: A consumption opportunity set model

Taylor, Peter

Abstract

This paper examines the Motability scheme which enables disabled people to obtain cars on a leasing basis in the UK. The scheme is centred around Motability, a charity, which has an arms-length relationship with a government department, and a close relationship with a non-profit making private sector organisation, Motability Finance Limited. The workings of the Motability scheme and its constituent organisations are discussed, the benefits it delivers and how they are generated over and above the transfer payments from the government are analysed using a consumption opportunity set model, and the market and hierarchical governance structures are considered for sufficiency and diversity. The relationships within the scheme have been subject to criticism in the media, although official investigations have found such criticisms to be without basis. The problem may have been a lack of transparency, but generally the scheme is found to work well and approach optimality.

• Journal Article Type: Article
• Publication Date: Jan 1, 2005
• Journal: International Journal of Public Policy
• Print ISSN: 1740-0600
• Electronic ISSN: 1740-0619
• Publisher: Inderscience
• Peer Reviewed: Peer Reviewed
• Volume: 1
• Issue: 1/2
• Pages: 78-90
• DOI: https://doi.org/10.1504/IJPP.2005.007794
• Keywords: economics, organisational structure, governance, Motability Scheme, consumption opportunity set model
• Public URL: https://uwe-repository.worktribe.com/output/1052136
• Publisher URL: http://dx.doi.org/10.1504/IJPP.2005.007794