To Whom It May Concern,

 

We, the undersigned, are writing to express our concern regarding the current mileage allowance rules for Universal Credit claimants who work as mini cab drivers and other tradespeople in the UK. Specifically, we are addressing the 45p per mile allowance for the first 10,000 miles, followed by a reduced rate of 25p per mile, and the 45p per mile allowance for the first 833 miles under Universal Credit, which then drops to 25p per mile thereafter. We believe these policies are fundamentally unfair and do not accurately reflect the true costs associated with operating a vehicle for work purposes.

 

**1. True Running Costs:**

The mileage allowances fail to consider the comprehensive running costs incurred by mini cab drivers and various tradespeople. These costs include, but are not limited to:

 

- Fuel expenses, which have seen significant fluctuations in recent years.

- Regular maintenance and repairs, which are essential for safety and compliance.

- Insurance premiums, which are often higher for drivers and tradespeople due to the nature of their work.

- Wear and tear on vehicles, which diminishes their value over time.

 

The cumulative effect of these expenses can far exceed the allowances, leaving drivers and tradespeople to bear the financial burden of their profession.

 

**2. Outdated Mileage Allowance:**

The mileage allowances are outdated and do not reflect the current economic realities faced by drivers and tradespeople. Since their introduction, the cost of living, fuel prices, and vehicle maintenance costs have all increased significantly. These allowances fail to adjust for inflation and the rising costs of operating a vehicle.

 

**3. Dead Miles:**

A significant portion of a mini cab driver’s and tradesperson’s working hours is spent driving without a passenger or load, commonly referred to as "dead miles." These occur when drivers or tradespeople have to travel to a job site, pick up materials, or move between locations, particularly in areas of high demand. The current mileage allowances do not account for these dead miles, further exacerbating the financial strain on workers.

 

**4. Contribution to Fuel Tax and Licensing Fees:**

In addition to the direct costs of operating their vehicles, mini cab drivers and other tradespeople contribute significantly to the economy through fuel tax and licensing fees. Each mile driven incurs fuel tax, which supports public services and infrastructure. Furthermore, many tradespeople are required to pay licensing fees to operate legally, which are often substantial and impact their overall earnings. These contributions are not reflected in the current mileage allowances.

 

**5. Vehicle Failure and Repair Costs:**

In the event of a vehicle failure, the costs of repairs can be substantial, often amounting to hundreds of pounds. Unfortunately, Universal Credit does not allow claimants to account for these necessary repair costs as part of their expenses. This oversight places an additional financial burden on drivers and tradespeople, as they are forced to cover these costs out of pocket without any support from the Universal Credit system.

 

**6. Impact on Universal Credit Support:**

The current mileage allowances unfairly affect the support received from Universal Credit. The allowances do not take into account the actual costs incurred by drivers and tradespeople, meaning that the financial support provided by Universal Credit can fall short of covering their essential expenses. As a result, many workers are left in a precarious financial situation, struggling to make ends meet despite their hard work.

 

**7. Potential Exodus from the Industry:**

If approximately 30,000 Universal Credit mini cab drivers and other tradespeople leave their jobs to pursue more stable employment in sectors such as retail (e.g., Tesco) or public transportation (e.g., bus driving), this could create a significant financial strain on the Universal Credit system. The government would not only face increased demand for Universal Credit support for these individuals, but they would also lose out on the fuel tax and other revenues generated by the drivers who operate their businesses. The loss of these contributions could negatively impact public services and the overall economy, undermining the very system that relies on the tax contributions of these workers.

 

**8. Financial Debt:**

As a result of the inadequate mileage allowances, many mini cab drivers and other affected tradespeople may find themselves in financial debt to cover their operating costs. This situation can lead to a cycle of borrowing, further exacerbating their financial struggles and making it increasingly difficult to break free from the burden of debt. The current policy not only jeopardizes their livelihoods but also their financial stability.

 

 

 

**9. Impact on Drivers and Tradespeople:**

The financial strain resulting from insufficient mileage compensation can lead to a range of negative outcomes for mini cab drivers and tradespeople, including:

 

- Increased stress and anxiety about meeting living costs.

- A potential decrease in the quality of service provided to customers, as workers may need to cut corners to save money.

- A higher turnover of workers in the industry, leading to a shortage of available services for the public.

- Diminished job satisfaction and morale, which can further affect performance and service quality.

- Long-term financial instability, as accumulating debt can hinder their ability to invest in their businesses or personal lives.

 

**Conclusion:**

In light of these considerations, we urge the relevant authorities to conduct a comprehensive review of the mileage allowance for mini cab drivers and other tradespeople. An adjustment to the mileage allowance that accurately reflects the true costs of operating a vehicle would not only support the livelihoods of these essential workers but also contribute positively to the economy by ensuring continued tax revenue and reducing reliance on Universal Credit.

 

We call for a fair and equitable solution that acknowledges the hard work and significant contributions of mini cab drivers and tradespeople to society.

 

Thank you for considering our petition.