Taxi and Private Hire Vehicle Driver and Operator Support Fund

On this page you can find out about the COVID-19 Taxi and Private Hire Vehicle Driver and Operator Support Fund 2021 to 2022.

Find out about:

What you can get

The Taxi and Private Hire Driver and Operator Support Fund 2021-22 assumes that local authorities will be making separate payments to eligible drivers and operators, based on distinct criteria, and capped by each individual local authority at £10,000 in total for both elements.

Driver element

For the driver element local authorities will make a payment of a further £1,500 to all drivers who previously received a grant under the Taxi and Private Hire Driver Support Fund.

Operator element

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 is payable based on the number of vehicle licences each owner/operator holds, as follows:

  • Owner/operators with one vehicle - a single award of £1,000
  • Owner/operators with two to nine vehicles - a single award of £3,000
  • Owner/operators with 10 to 49 vehicles - a single award of £7,000
  • Owner/operators with 50 or more vehicles – a single award of £15,000

How the grant will be provided

Local authorities will administer the grants and will be responsible for delivering the funding to eligible taxi and private hire drivers and licenced private hire and taxi operators. The Scottish Government will fund local authorities to make these payments.

When will you receive the grant

Driver element

Local authorities will begin to process payments towards the end of week commencing 7th June 2021, or earlier if possible. Payments will be made into a business bank account, where possible, or personal accounts.

Operator element

Local authorities will begin to contact all eligible vehicle licence holders from mid-June 2021 to brief them on their potential entitlement and invite them to provide relevant supporting information and bank details. Local authorities will aim to make payments in June/July, subject to receiving any relevant supporting information required, and where the eligibility criteria have all been met.

Payments will be made into a business bank account, where possible, and personal accounts.

Eligibility

View eligibility per element:

Driver element

The core criteria for the Coronavirus (COVID-19): Taxi and Private Hire Driver Support Fund was as follows:

  • a taxi or private hire driver holding a valid licence for the period 9th October 2020 to at least 31st January 2021;
  • are, or have been, working or available for work as a taxi or private hire driver; and
  • experienced loss of income (50% of turnover, compared with 2019) and incurred overhead costs and expenses

For the driver element of the Taxi and Private Hire Driver and Operator Support Fund 2021-22, a one-off grant of £1,500 is payable based on the following criteria:

  • the driver must have previously received a grant from the Taxi and Private Hire Driver Support Fund earlier in 2021; and
  • their local authority taxi or private hire driver licence must remain current and valid as at 3 June 2021

Operator element

For the operator element of the Taxi and Private Hire Driver and Operator Support Fund 2021-22 eligibility is based on the following criteria:

  • an individual or company holding a valid taxi or private hire vehicle licence as at 3rd June 2021; one claim per vehicle, generally and in particular where a licence is held jointly by a number of individuals; and
  • the operator must have experienced loss of income (50% of turnover, compared with 2019) and incurred overhead costs and expenses

Other eligibility criteria

Both taxi and private hire drivers and taxis and private hire operators applying for support must also meet the following criteria and where necessary supply appropriate documentation to substantiate each:

  • they must not have breached wider COVID-19 regulations/requirements;
  • they must not have connections to tax havens, as set out in the Coronavirus (Scotland) (Nov.) Act 2020; or
  • applicants may be required to declare all previous support received from UK, Scottish or Local Government support schemes to provide local authorities with the necessary information to ensure payments are made correctly and compliant with EC State Aid limits/UK Government subsidy control policies

Tax and benefits

Grant income received by a business is taxable. The operator element of the Taxi and Private Hire Driver and Operator Support Fund will need to be included as income in the tax return of the business.

Grant income through the Taxi and Private Hire Driver and Operator Support will be regarded as capital by the Department for Work and Pensions. Recipients of this support who are also in receipt of working age benefits must declare the grant to the Department of Work and Pensions in order to have it taken into account when calculating their benefit entitlements.

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 in June. You should therefore not contact your local authority in the interim as this may divert staff resources form work to deliver prompt payments.

Local authorities have, however, been asked to ensure access to information is not wholly online, and that advice is available to individuals if required.