Finance firm Octopus announce further measures to support taxi drivers during COVID-19 pandemic
Finance and energy firm Octopus have announced further measures to support taxi drivers through the disruption that continues to be caused by the COVID-19 pandemic.
Over the last week Octopus have been closely monitoring the landscape of the taxi trade, and have been carefully listening to the feedback from drivers about how this is affecting them.
In addition to confirmation last week that they will reset and postpone the next minimum mileage checkpoint to 1 October 2020, Octopus announced on Friday that they are introducing an additional measure: a three-month payment holiday for mileages driven in the months of March, April and May 2020.
The mileages driven during these three months will continue to be logged, but those on an existing 'Pay As You Use' finance option with Octopus will not be billed in this period. Instead, the total mileage covered in March, April and May will be recovered in 24 equal installments from the driver's monthly direct debits over the subsequent two years.
This will allow drivers to continue using their vehicle without any immediate need to pay for the associated mileage.
Here is an example to illustrate:
You drive a total of 6,000 miles in March, April and May 2020.
Your price-per-mile is £0.40, meaning they have an outstanding balance due of £2,400
The balance of 6,000 miles is divided into 24 instalments of 250 miles per month
250 miles per month is reclaimed at your price-per-mile of £0.40, resulting in a £100 monthly charge
The first instalment of this mileage reclaim will occur in your direct debit scheduled on the 1st July 2020 and will be in addition to your mileage payment due for June 2020
A further £100 would then be collected in each of the following 23 months of direct debits, until the balance of the £2,400 is fully repaid.
Who are Octopus? Watch TaxiPoint’s video below to learn more:
Lead image credit: LEVC
