Covid in Scotland: Government U-turn on taxi grant

Taxi drivers who are claiming Universal Credit will be allowed to apply for a new support grant, the Scottish government says.

On Monday, Scottish ministers said the new £1,500 grant would not be available to those claiming state benefits.

But after pressure from opposition parties the criteria has been changed to allow drivers on the lowest incomes to access the financial aid.

The grant is to cover costs such as insurance for taxis not on the road.

Business Minister Jamie Hepburn has warned that the Department for Work and Pensions (DWP) could still treat the grant as income and deduct cash from drivers' benefit payments.

He has called on UK government ministers to "do the right thing" to ensure taxi drivers do not lose out.

'Justifiably concerned'

The DWP said on Monday the Scottish government was being "misleading" and "has significant welfare powers" of its own.

Mr Hepburn said: "We have responded to the concerns of drivers and we have removed grant conditions relating to state benefits.

"However, we remain justifiably concerned that any payment would simply be deducted from an applicant's benefits."

Councils will approach the estimated 38,000 drivers who could benefit, urging them to claim the cash, which is aimed at helping them cover fixed costs at a time when Covid-19 has seen their incomes fall massively.

Peter Campbell, a taxi driver in Aberdeen, said the news was a welcome break from the "doom and gloom"

Glasgow Taxis welcomed the U-turn, along with Peter Campbell, a taxi driver in Aberdeen.

He told BBC Scotland's The Nine programme: "It's the first time I've seen the taxi drivers smile for about a year.

"It's a start, a step in the right direction and it's good they are listening to us, they seem to understand the plight we are in."

'U-turn welcome'

Taxi journeys have fallen significantly since the start of the pandemic, with the Unite union claiming 80% of taxi drivers have lost up to three quarters of their usual incomes.

While taxis are still allowed to operate in the latest lockdown, they have seen passenger numbers fall away with bars, restaurants and schools closed.

Scottish Conservative leader Douglas Ross said: "Kate Forbes' U-turn is very welcome, this oversight could have forced drivers and businesses to close.

"There's no way the SNP can credibly blame Universal Credit for their own mistake. The £1,500 grant would clearly put more money in taxi drivers' pockets and the fact they have backed down under pressure shows they knew they were in the wrong."

'Much-needed financial assistance'

Speaking on Monday, a spokesman for the DWP said the Scottish government "can top-up existing benefits, pay discretionary payments and create entirely new benefits in areas of devolved responsibility".

He added: "The UK government has provided an additional £8.6bn in funding to the Scottish government to tackle the pandemic in Scotland."

Unite Scottish Secretary, Pat Rafferty, said: "The announcement will provide reassurance and much-needed financial assistance for many, in particular, those most in need.

"It's vital that no driver is penalised when applying for the grant and to this end the Scottish government must use their welfare top-up powers if needs be to ensure that this is the case, while continuing to press the Department of Work and Pensions for these assurances. "

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