Taxi industry officials are requesting that finance companies offer further extended payment holidays to help cabbies if needed during the COVID-19 pandemic.
With lockdown measures still currently in place across the UK and little sign of normal work levels returning soon, trade representatives have called on finance companies to follow the examples of extended support made by the government and mortgage providers.
Last month, it was announced homeowners struggling to pay their mortgage due to the effects of coronavirus, are likely to able to extend their mortgage payment holiday for a further three months, or start making reduced payments, in proposals published.
The availability of a three month mortgage holiday was first announced in March as part of an unprecedented package of support for individuals, businesses and the economy.
Last week the Chancellor announced that cabbies and other workers eligible under the Self-Employment Income Support Scheme (SEISS), which has so far seen 2.3 million claims worth £6.8 billion, will be able to claim a second and final grant in August.
The extension announced will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
Taxi financing firms reacted quickly at the start of the pandemic to offer drivers payment breaks for three months. These payment breaks are however coming to an end and work levels still remain unsustainably low for cabbies accords the UK.
In March a three-month finance payment holiday initiative was agreed by taxi manufacturer LEVC and finance company Black Horse available nationwide. Similar packages were offered to other cabbies via their finance company.
Steve McNamara, General Secretary of Licensed Taxi Drivers’ Association (LTDA), said: “We are still chasing all the major trade finance companies requesting that, like the Chancellor, they extend their payment holidays for another 3 months to allow members to stay safe and decide themselves when it will be best to get back to work.”