Tax Grant Won't Impact Universal Credit, UK Gov Confirms

Aberdeenshire East MSP Gillian Martin and Banffshire and Buchan Coast MSP Stewart Stevenson have welcomed confirmation a grant offered to support taxi and private hire drivers will not impact Universal Credit payments.

It comes after the Scottish Government announced a £57million funding package to help support the sector following the impact on business as a result of the coronavirus pandemic.

Concern had been raised, that drivers who were receiving universal credit, would have their income assessed based on receipt of the grant.

Now the Department of Work and Pensions (DWP) has confirmed: “Covid-19 related grants which are intended to cover the loss of business income and to aid business recovery, will be disregarded for Universal Credit purposes for 12 months.”

The DWP also confirmed this would include the Scottish Government grant for taxi and private hire drivers.

Commenting, Gillian Martin MSP said:

“I am pleased to have confirmation from the UK Government that taxi and private hire drivers will not have their Universal Credit impacted by any grant they receive.

“Many businesses have had their lives changed in the past year with the impact of Covid-19 and it is only right that we provide any financial support we can to help them.

“I hope this gives reassurance to drivers who are eligible for the Scottish Government grant that they can now do so.

“The substantial increase in support for them announced earlier this month is the recognition they deserve in what has been a tough time for the industry due to the lockdown restrictions.”

Commenting, Stewart Stevenson MSP said:

“Despite the restrictions, many fixed costs have still remained for drivers, such as general maintenance, licence plate fees, rental fees and insurance payments and the increase in funding will cover these expensive costs.

“This confirmation is a welcome step forward as we continue to work hard to reduce the number of people infected with coronavirus.”