United's hopes of qualifying for the Champions League were dented last night following a 2-0 loss at Liverpool in the first leg of a last-16 tie in the Europa League. The winner of the second-tier continental competition earns a spot at next season's Champions League.
The Red Devils are sixth on the Premier League table with 47 points from 28 matches - three points behind fourth-placed Manchester City, who have a game in hand. The top four finishers also earn a ticket to Europe's premier club tournament.
"Manchester United should be competing to win the Premier League and Champions League every season," Scholes told BT Sport.
"They have spent £300 million and they are sixth in the league. They have ended up in the Europa League after failing in a poor Champions League group. They should be competing with Barcelona, Real Madrid and Bayern Munich.
"The last thing I want for them is to be happy with finishing fourth and winning the FA Cup. That's what Arsenal do ever year. You see them celebrate out on the pitch when they come fourth in the Premier League. That can’t happen at United.”
The 41-year-old Scholes retired in July 2013 after making 696 outings for United.