TfL unable to provide taxi drivers support due to London councils receiving the cash, says Khan

Transport for London (TfL) were unable to provide financial support to taxi drivers due to coronavirus relief funding going straight to local councils, says Mayor of London.

In an eye opening interview TaxiPoint asked the Mayor of London, Sadiq Khan, why TfL were unable to provide support to drivers struggling due to the impact of the pandemic. Other large licensing authorities around the UK have been able to provide targeted support to help drivers cover costs whilst work levels in the industry remain low.

TfL and the Mayor have however been able to support taxi and private hire drivers currently working throughout the pandemic with free PPE and cleaning products.

Sadiq Khan told TaxiPoint: “I'm acutely aware of how hard the last year has been for taxi and private hire drivers in London and I have been keen to provide support wherever possible.

“The coronavirus response money from the Government that's been used outside of London by some local authorities to assist drivers has gone straight to the councils in London and not to TfL. We did explore whether councils across London would be able to provide financial help for drivers, but all of their funding had already been allocated.

“Where I have been able to, I've been keen to help. TfL were right to offer cabbies some flexibility for vehicles that were coming up to having their licence renewed during the first lockdown and I’ve also lobbied the Chancellor on behalf of the trade.

“I’ve pushed for more flexibility in the way that the Self Employment Income Support Scheme (SEISS) grants are calculated, urged the Government to exempt ZEC taxi purchases from capital allowances and have made the case that payment holidays for taxi and private hire licensees with vehicles on finance should be further extended.

“We haven’t had much joy with Government yet, but I will keep pushing.”

According to a recent survey conducted by the Licensed Taxi Drivers’ Association (LTDA), nearly nine in ten struggling London taxi drivers say the Self-Employment Income Support Scheme (SEISS) grants do not cover both their living and business expenses.

The study also revealed that over half of all taxi drivers are currently not working as cabbies, with a huge number of those not stepping in a black cab since the first lockdown in Spring 2020.

Of the 1,104 LTDA member respondents, 99.8% said their income had been affected by the pandemic. 25.5% of those said they currently had no income at all from driving a taxi due to the pandemic, and 34.8% said they were earning 20% or less of their usual income.

79% were receiving support from the Government through the Self-Employment Income Support Scheme, but of these drivers 87% said the grants they receive are not sufficient to cover both their living and business expenses.

53% of respondents told the LTDA they are not currently working as a taxi driver. 41% of those have not worked since the first lockdown in March / April 2020 and another 40% last worked in November / December 2020, when Tier 4 restrictions were introduced in London.

Just 5% have received grants from their local council.