‘FAMILY BADGE’ ARRANGEMENTS: The illegal practice threatening passenger trust and safety in the taxi industry
- Perry Richardson
- 5 minutes ago
- 3 min read
Concerns raised by taxi drivers in Dundee has brought attention to an issue many within the UK taxi industry say has existed for years but is becoming increasingly difficult to tackle.
Allegations that licensed taxis are being driven by individuals who do not hold the required taxi driver’s licence, often referred to within the trade as “family badge” arrangements, have prompted renewed calls for tougher enforcement and stronger identity verification.
According to a recent report by The Courier, Dundee City Council has received complaints about individuals allegedly driving licensed taxis without the appropriate driver’s licence. The authority says it is aware of the allegations and that council officers, alongside Police Scotland, carry out regular compliance checks on taxi ranks throughout the day and night.
Although there is little published evidence showing how widespread the practice may be, drivers and trade representatives in several licensing areas have privately expressed concerns that economic pressures and limited enforcement resources may be creating opportunities for illegal activity.
The alleged arrangements generally involve a licensed driver’s vehicle, badge or dispatch account being used by another person, often a family member or close associate, who has not been licensed by the local authority.
A licensed relief driver who has been approved by the relevant licensing authority can legally drive the vehicle. However, someone using another driver’s credentials without holding their own taxi driver’s licence is operating outside the law.
Taxi driver licensing is designed to ensure every person carrying passengers has passed the necessary checks before entering the trade. Depending on the licensing authority, this can include enhanced criminal record checks, medical examinations, right-to-work verification, safeguarding training, driving assessments and knowledge tests. These measures are intended to protect the travelling public and ensure drivers meet the standards expected of a licensed profession.
When an unlicensed individual takes over that role, those safeguards are effectively bypassed. Passengers entering a licensed taxi expect the person behind the wheel to be the individual approved by the council. If that is not the case, public confidence in the licensing system can quickly be undermined.
There are also important insurance considerations. Taxi insurance policies are generally based on licensed drivers operating licensed vehicles. If an unlicensed individual is driving, insurers may question whether cover remains valid depending on the circumstances, potentially exposing drivers, vehicle owners and passengers to significant financial and legal risks following a collision.
The practice can also place legitimate drivers at a commercial disadvantage. Complying with taxi licensing requirements involves ongoing costs, including licence fees, medicals, DBS checks, insurance, vehicle testing and maintenance. Those operating illegally avoid many of these expenses while still competing for the same fares, creating an uneven marketplace for drivers who comply with the rules.
Trade representatives argue that the issue is about far more than commercial fairness. Unite has raised the matter with Dundee City Council licensing officers and is seeking further discussions with Police Scotland, saying public safety must remain the priority.
Among the measures suggested are stronger identity verification systems linked to dispatch technology, including facial recognition, alongside more prominent identification displayed inside taxis so passengers can more easily verify who is driving them. Supporters believe these systems could make it far more difficult for someone to operate using another driver’s credentials.
The increasing use of app-based dispatch systems could make technological solutions more practical, although any introduction of biometric verification would need to comply with data protection legislation and privacy requirements.
Enforcement remains one of the biggest challenges. Local authority licensing teams often have limited resources, making it difficult to carry out frequent roadside inspections or rank checks. While councils and police have powers to investigate allegations, illegal activity can be difficult to detect without intelligence from passengers, operators or other drivers.
Whether the issue is confined to a small number of cases or reflects a wider problem is difficult to determine, as relatively few prosecutions specifically linked to so-called family badge arrangements are publicised. Even so, the allegations highlight the importance of ensuring every licensed taxi is driven by the individual who has been vetted and approved by the licensing authority.
