No future taxi trade specific financial support to be offered to cab drivers and operators hints DfT

No future plans of trade specific financial support to be offered to taxi drivers and operators despite the delayed relaxation of COVID-19 restrictions, says minister.

The Department for Transport (DfT) confirmed that cabbies and taxi operators should continuing seeking support via the Self-Employment Income Support Scheme (SEISS) and their Local Authority instead.

Alberto Costa, a Conservative MP for South Leicestershire, asked the Secretary of State for Transport: “What plans he has to make further financial support available to taxi businesses and drivers in response to the delayed relaxation of the COVID-19 restrictions originally planned for 21 June 2021?”

Rachel Maclean, DfT Minister, responded: “The Government has announced several measures available to UK businesses, including the taxi and private hire sector, to support them through the pandemic.

“The majority of taxi and PHV drivers are self-employed and can therefore apply for grants through the Self-Employment Income Support Scheme (SEISS).

“On 3 March, the Chancellor announced that the fourth SEISS grant will be set at 80% of 3 months average trading profits paid out in a single instalment, capped at £7,500.

“A fifth grant covering May 2021 to September 2021 will be open to claims from late July 2021. The amount awarded will be determined by how much an operator’s turnover has been reduced in the year April 2020 to April 2021.

“Operators can continue to apply for the Additional Restrictions Grant via their Local Authority, which is a discretionary grant to businesses not receiving other support or who are extremely impacted by the COVID-19 pandemic.”

According to TaxiPoint research, more than 15% of taxi and Private Hire Vehicle (PHV) drivers have received no Government or Local Authority financial support throughout the pandemic.

The coronavirus pandemic has had a devastating impact on the taxi and PHV industry financially since restrictions were first brought in over 12 months ago in March 2020.

According to TaxiPoint research most of the drivers surveyed were registered as Self-Employed (96.4%). However, nearly one in five of those taxi and private drivers have failed to receive any Self-Employed Income Support Scheme (SEISS) grants throughout the pandemic.

Of those unable to access SEISS grant funding only 23.9% received Additional Restrictions Grants (ARG), Local Restrictions Support Grant (LRSG), Scottish Government Grant or other funding.

According to the survey, 15.3% of taxi and PHV drivers received no Government or Local Authority support throughout the pandemic.

Cabbies in Northern Ireland marginally received the least amount of financial support across the UK with 16.7% of cabbies unable to access any funds. Scottish drivers were marginally the most supported with 13.3% of cabbies lacking any type of funding.