Taxi Tax Hike Threatens Isolation of Elderly, Campaigners Warn

Campaigners are expressing concern that a potential increase in VAT on taxi fares could lead to increased isolation and loneliness among older people. The Chancellor is facing pressure to rule out such a tax hike before the upcoming autumn Budget.

Charity Re-engage UK has warned that higher fares would negatively impact the ability of older individuals to maintain their independence and live with dignity. The potential for a 20% VAT on private hire vehicle journeys stems from a recent legal ruling. Campaigners are also worried about a potential exodus of drivers as a result.

Re-engage UK is highlighting the specific impact on older citizens, who often rely on taxis for essential activities such as visiting loved ones, accessing services, attending social events, and getting to medical appointments.

One example is Pat Sparke, a 90-year-old from Essex, who relies on taxis due to the lack of public transport in her area. She fears that a price increase would make it difficult to see friends and family and attend important appointments. Polling data reveals that a significant majority of those over 65, as well as the general public, oppose the VAT increase.

Jenny Willott, the chief executive of Re-engage UK, emphasizes that many older people already face mobility challenges and limited access to public transport. She argues that taxing their travel would exacerbate the problem, making it unaffordable for them to stay connected and access support.

The Stop the Taxi Tax campaign spokesperson has stated that the proposed tax increase would violate a previous manifesto promise and disproportionately affect vulnerable populations, including the elderly.

A Treasury spokesperson has stated that they are committed to supporting pensioners and are reviewing feedback from a recent consultation. They also highlighted recent increases to the state pension.