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FROM £750 to £15,000: Details of Scottish taxi support fund released by Government

Updated: Jan 9, 2022

Image credit: Ross Campbell

Scotland’s First Minister handed a welcomed boost to the taxi and private hire trade by announcing a new £28million fund to support struggling drivers and operators.

The First Minister, Nicola Sturgeon, made the announcement during a COVID-19 update at Holyrood earlier this week.

Initial information about the fund of up to £28million has been released with more detailed guidance set to be published shortly.

Funding for drivers

Drivers licensed in Scotland may be eligible for an additional payment of £750 if:

  • they received support through the Taxi Driver and Private Hire Vehicle Driver Support Fund in 2021

  • they are still active in the sector.

Applying for the payment

Drivers do not need to apply for this according to Scottish Government sources.

The payments will be administered by the cab drivers' local authority on behalf of the Scottish Government. The local authority will be in touch to verify the driver’s entitlement and arrange payment.

A timetable will follow soon and drivers are being urged not to contact their local council about this.

Funding for operators

Operators may be eligible for a grant between £750 and £15,000 if:

  • they received funding from the Taxi Driver and Private Hire Vehicle Driver Support Fund in 2021

  • they are still active in the sector.

Amounts payable will be differentiated and scaled, with a base grant payable to owner-operators with one vehicle, and higher grants for those operators holding multiple vehicle licences.

The grant payable is based on the number of vehicle licences each company, partnership, sole trader or trust (operator) holds, and which are currently active, as follows:

  • owner/operators with one vehicle - a single award of £750;

  • operators with two to nine vehicles - a single award of £3,000;

  • operators with 10 - 49 vehicles - a single award of £7,000; and

  • operators with 50 or more vehicles – a single award of £15,000.

These awards take account of costs arising from the operation of booking offices, where appropriate. Some elements of conditionality will be set out in a further update, relating to reductions in rental costs for drivers, and payment of the real Living Wage to booking office employees.

Other funds available

Local authorities will be making separate payments to eligible drivers and operators from the Taxi and Private Hire Driver and Operator Support Fund 2022. This is a different fund and details of these will be published shortly.


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