The head of the debated government-run Motability scheme, which supplies new cars to individuals with disabilities, has received a significant salary increase amidst public discontent over benefits recipients driving high-end cars.

Andrew Miller, the 59-year-old chief executive, earned £924,000 this year—approximately 25% more than last year—thanks to a substantial £300,000 bonus.

His compensation package also included a £21,000 car allowance and private healthcare coverage, according to financial records.

The former Guardian executive experienced a nine percent increase in his base salary, elevating it to over half a million pounds. This comes during a year when the scheme has faced substantial scrutiny and criticism.

Last year, Mr. Miller’s total earnings amounted to £748,000.

Recent accounts revealed that Motability’s rental income increased by 25% to £3.5 billion, largely due to a surge in demand from individuals receiving personal independence payments (PIP).

More than 890,000 people now use the Motability scheme, which accounts for around one in six new vehicles sold in the UK. 

The Motability scheme allows disability welfare claimants to swap their mobility allowance for a lease on a new car, which are also exempt from VAT and insurance premium tax.

Chief executive of Motability Andrew Miller, 59, took home £924,000 this year, around a quarter more than the year before, after being handed a huge £300,000 bonus 

While many disabled people rely on Motability cars to get around, the perk has been criticised for allowing those with more minor conditions such as anxiety or depression to claim taxpayer-funded cars.

The scheme has already been forced to remove luxury cars such as new BMWs and Mercedes Benz after public outcry.

Even Chancellor Rachel Reeves admitted it was ‘unfair’ to lease the expensive models to benefits claimants, with the Motability scheme later announcing it would cease offering these, as well as cars made by Audi, Alfa Romeo and Lexus.

Figures revealed this year showed that of all the cars leased through the scheme, one in ten are wheelchair adapted.

In its report, the firm said the increase in Mr Miller’s pay and bonus was due to the ‘complexity’ of the role, and navigating challenges such as the move to electric vehicles.

He oversaw a total revenue of £7.1 billion for Motability this year, made up of a roughly equal split between the renting of cars and sale of old vehicles.

Around one in six new car sales in the UK this year were part of the Motability scheme, but in some areas of the country the figure is closer to one in three. 

Data published by the Conservatives earlier this week showed almost 280,000 new cars purchased in England and Wales in 2024-2025 were bought under the scheme – around 16 percent of all car sales.

Claimants could have previously got a Mercedes-Benz CLA Coupe for the same upfront price 

For an upfront payment of £7,999, customers have previously been able to walk away with a brand-new BMW i4 M Sport, which retails at £50,000

In Wales, 33 per cent of new cars sales were made through the scheme, followed by 26 per cent in the North East and 24 per cent in London. 

Ms Reeves previously shared concerns that Motability was offering ‘a premium motoring experience subsidised by the taxpayer’ that was out of reach to many working families.

It came after it was revealed that 85 percent of claimants through the scheme were paying an additional fee to access higher quality, luxury vehicles. 

Motability said it would stop offering the models, meaning claimants currently driving BMWs and Mercedes will have to move to another brand next time they change vehicles under the scheme.

Motability has also vowed to increase their use of UK-made cars and aims for 2035 to be the first year that half of the vehicles leased through the scheme are British.

The Department for Work and Pensions (DWP) does not directly fund Motability, but the scheme allows disability benefits claimants to directly exchange their mobility allowance for a new car.

Motability was founded in 1977 as a charity by the government. 

CEO Mr Miller is the previous head of the Guardian Media Group and was in charge when the media giant owned car company Autotrader. 

Having headed up the group between 2010 and 2015, he continues to hold significant roles in the media, most notably as a non-executive director at Channel 4.

A Motability Operations spokesperson said: ‘The Motability Scheme’s priority is to continue to connect disabled people to freedom and independence now and in the long term. 

‘In recent years, we have reduced costs even as inflation has risen. In the coming years, the Scheme will continue to evolve to manage the recent tax changes which will return £1 billion to the taxpayer, while still ensuring disabled people can remain independent as petrol car production declines. 

‘The changes to executive pay reflect the experience needed to lead a large multi-billion-pound company through significant change in an efficient and responsible way to deliver for disabled people and the country.’

The DWP has been contacted for comment.