Taxi Driver Online

Taxi drivers slam government support as union warns cash 'won't make a dent'

https://www.scotsman.com/news/people/ta ... nt-3103548

Taxi drivers say they are bitterly disappointed at a support fund announced by the Scottish government, as union leaders warned the cash is “nowhere near enough”.

Finance secretary Kate Forbes has issued a statement confirming a support fund of £57 million will be launched this week, enough to provide grants of £1,500 to all of Scotland’s 38,000 taxi and private hire drivers.

The fund is treble the amount announced by the First Minister on November 17 to provide cash help to businesses severely hit by Covid-19.

But drivers and union leaders have claimed that the one-off payment is short-changing the trade, warning many face mounting debts to keep their vehicles on the road while takings are down by up to eighty per cent.

It comes after a number of politicians blasted the Scottish government for failing to help struggling taxi drivers. Last week Ruth Davidson accused the government of being “great at making announcements” but failing to get vital financial support into hands of businesses.

Andy Taylor, a driver from Edinburgh, said: “It’s good that they increased the funding but its one payment. It just feels like a kick in the teeth. Most drivers left on the road now will be owner operators like me so have huge overheads just to keep a vehicle on the road. I have had to borrow a bug sum, after I got letter from debt collection company. I feel like the world is closing in. It costs me about £1400 a month to keep vehicle on road but I make about 200 a week just now, if I’m lucky. The debts keep mounting up. I feel helpless, desperate and is if I am letting my family down. But we are trying our hardest with very little help available.”

A recent survey from Unite revealed around 30 per cent of drivers have not got any financial help from government support schemes.

The survey laid bare the struggle of drivers regularly working 16-17-hour days with a shift being determined as having been ‘good’ if £50 is cleared.

Jacqueline Dunn, branch secretary for Unite, said: “We welcome the funding has increased overall but it’s nowhere near enough. It won’t make a significant difference.

"Many are in debt, accumulated since March when the first lockdown hit. I know some already bankrupt. I had to stop driving taxis after Christmas and get another job.

"The trade is on it’s knees. Most are bringing in about 20 per cent of usual income, while they still have 100 per cent of costs. A one off £1500 payment is nowhere near enough. It won’t even make a dent.”

Unite launched a petition this week calling for drivers to be eligible to access the Scottish government’s Strategic Framework Business Fund, which would see owners getting payments every four weeks for as long as restrictions are in place.

Ms Forbes said: “Following the introduction of tighter regulations at Christmas I have trebled the budget originally announced for this fund to £57 million, enough to provide grants of £1,500 to all of Scotland’s 38,000 taxi and private hire drivers.

“It will help to support the taxi trade by augmenting existing support and assisting drivers in meeting fixed costs.”

Obviously those quoted in the article aren't pleased, but if I get £1,500 I'll be more than happy.

Maybe not or even but maybe and

But until the money's actually in the bank.

After all, and correct me if I'm wrong, but it's £1,500 more than most drivers in England will be getting?

But the figures quoted suggest that it'll be £1,500 per badge, so you'll get the same whether you run a car or not.

And presumably those working part-time for beer or holiday money will get the £1,500 as well

Or some who have long since left the trade, even before Covid, but still have a three-year badge, so will qualify for the grant

Or might have only worked in the trade a few weeks, or never actually worked their badge at all?

Of course, there may be other criteria involved other than just having a valid badge, so we'll just have to wait and see

Coronavirus (Covid-19): Taxi and Private Hire Driver Support Fund

Published: 18 Jan 2021

Grants to support taxi and private hire drivers in Scotland.

https://www.gov.scot/publications/coron ... /overview/

Overview

If you are a licensed taxi or private hire driver experiencing financial challenge as a result of coronavirus (COVID-19) you may be eligible to receive a one-off grant of £1,500.

This support is separate from and in addition to any other funding you may have received from the Scottish or UK Government, for example the Self-Employed Income Support Scheme and the COVID-19 Public Transport Mitigation Fund.

If you are eligible for a grant your local authority will get in touch with you, starting from week commencing 18 January 2021. You do not need to contact them.

Who is eligible

You may be eligible for a £1,500 grant if you are a taxi or private hire driver and have been licensed from 9 October 2020 to at least 31 January 2021. This does not include drivers whose licenses were suspended on or before 31 December 2020 and that remains current and valid.

Up to 31 December 2020, you must also:

have experienced loss of income (50% of turnover, compared with 2019) and incurred overhead costs and expenses

have been working or available for work as a taxi or private hire driver; and not be in receipt of state benefits payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit at the time of applying

Your local authority may ask to you to provide additional evidence to confirm if you are eligible. They will of course need your bank account details.

In addition you must:

not have breached COVID-19 regulations

not have connections to tax havens, as set out in the Coronavirus regulations

declare all previous support from UK, Scottish or local government support schemes

How to apply

You do not need to apply – your local authority will get in touch with you by letter, email or other communication method from week commencing 18 January. You do not need to contact them.

If you are being contacted by letter, it may take a bit longer for this to reach you.

You will be asked to provide any relevant supporting information and your bank account details.

Local authorities are expected to offer an appeals process.

Well that looks pretty straightforward as far as I'm concerned personally

Don't know if the council will require evidence of the 50% the drop in turnover last year, but if so I'll just send them my (mainly) blank worksheets

Bit of disquiet evident on social media already, though - multi-owners won't get any extra, and won't even get a penny if they don't have a badge, by the looks of it

And anyone in receipt of any kind of benefits getting zilch as well - one driver saying that the majority have been claiming UC. Suspect that's a slight exaggeration, but no doubt some will have been claiming UC, and therefore won't be eligible.

you can afford to book your holiday now !!

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Well that's one thing that *won't* be happening. Unless I win the Euromillions tomorrow, as per...

I was thinking more in terms of paying the rent for three months

Anyway, a fair bit of stink being kicked up about anyone who's been claiming benefits being excluded from the grants. I'm inclined to agree, depending on individual circumstances. But don't know how if a grant is being paid now how that would affect any previous benefits claim. Very messy

Fortunately for me, if all you've claimed is the SEISS then that's ignored as far as eligibility for the Scottish Government's grant is concerned.

Anyway:

Indeed, the minister Kate Forbes MSP has pointed out that the grant would be taken into account for UC purposes, thus if you get the grant then you'd lose a similar sum in benefits



So tough on those who've claimed benefits, but to a degree it's swings and roundabouts...

Anyway, at least she's not made the grants conditional on drivers speaking Gaelic, which would rule me out

No, seriously

Gaelic is only spoken by 1.1% of people living in scotland and they all speak english as well1, theres 5 times more people speaking Polish than gaelic in Scotland.....yet because of that 1.1% every police car and Ambulance had to have a Gaelic spelling on it at great public expense..fechin idiots.

I'm looking at the qualyfying criteria:

"have experienced loss of income (50% of turnover, compared with 2019) and incurred overhead costs and expenses"


And with having a School contract Its very marginal if I qualify....But what do they mean by "incurred overhead costs and expenses"

I would qualify if the Money for work carried out in November and December of 2018 but for which we never received payment until the January of 2019 was removed from the calculations, strictly speaking that money was not in the 2019 years account. but the incurred Overhead costs and expenses has me perplexed...is that cleaning and PPE etc?

Dunno, I was thinking earlier that it was all a bit vague, but since my own affairs are quite straightforward then it wasn't a problem for me.

But I'm assuming overheads etc just means the normal stuff like repairs, insurance and licensing. I suspect the intention is to stop people claiming who have really just left the trade, but it's very unclear, and what the councils may want in terms of evidence I haven't a clue, and suspect they won't have a clue either, at least at this stage. Could well see some councils asking for impossible evidence, while others will just ask you to tick a box or two

As for the turnover stuff, I'm assuming they're just asking you to compare turnover in the calender years 2020 and 2019 (which probably isn't the same as your accounting years - my accounting year ends 30 November).

But, strictly speaking, in accounting *turnover* is when you do the job, not when you get the cash, if that's any help.

However, usually for small businesses turnover will just be shown when you recieve the cash - called cash basis rather than proper accounting basis.

But if your council asks you for turnover figures and it helps to show the work when you did it rather than when the cash was received then I would go for that.

Note too that the intention of the grant is to cover fixed costs etc that won't be covered by SEISS, because that only covers profit (or a percentage of profit at least).

In her statement Kate Forbes said:



So I suspect that's what they're getting at when they say you must have 'incurred overhead costs and expenses'.

And at least she didn't say it in Gaelic, which might have caused us all even more problems working it all out

Aye it is a bit vague....you could be above 50% of Turnover but still made a loss as profits are made from the 60% upwards after all your constant and variable costs are taking into account.

Indeed.

But good luck to Scottish drivers, the more money that goes to the trade the better.

This might even nudge the UK Gov to follow suit in England.

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IDFIMH

My heart bleeds for them.

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IDFIMH

These things often very crude. As I said when the SEISS first announced, you could lose just a tiny bit of turnover yet have received thousands a month in grants.

And some will get this £1,500 who don't really need the money, while it won't even touch the sides for others, particularly if they've got big repayments on an EV, or similar.

I'm maybe inbetween - car's paid, so ignoring fuel the grant will cover about half of all my car bills last year - licence renewals, insurance and two biggish garage bills

Oh, and my £30 car tax