Government says councils MUST follow strict safeguarding rules if authorities offer restricted private hire licences

The Government has reaffirmed that all local authorities in England, including East Cambridgeshire District Council, must follow strict national safeguarding standards when issuing restricted private hire vehicle licences.

The response came after Opposition Assistant Whip Nick Timothy MP asked the Secretary of State for Transport to assess whether East Cambridgeshire District Council is complying with Department for Transport (DfT) guidance on the issue of restricted private hire licences. A further question sought clarity on the adequacy of safeguards for such licences more generally.

Replying on behalf of the Department, minister Lilian Greenwood said that while local licensing authorities have discretion in how they manage their taxi and private hire licensing regimes, they are required to ensure that all drivers and vehicles are safe to carry the public.

Greenwood said: “The Department for Transport issues guidance to assist licensing authorities to enable the provision of safe and accessible services through proportionate regulation. The Department’s statutory guidance to licensing authorities on exercising their taxi and PHV licensing functions to protect children and vulnerable adults sets out a robust set of safeguarding measures.”

She confirmed that all licensing authorities must have regard to this statutory guidance and are expected to implement its recommendations unless they have a compelling local reason not to.

The guidance applies to all forms of taxi and private hire licensing, including licences issued on a restricted basis. It requires that all drivers undergo the highest level of vetting available, including an enhanced Disclosure and Barring Service (DBS) check, and checks of both the children’s and adults’ Barred Lists.

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The Department confirmed that all licensing authorities in England, including East Cambridgeshire District Council, have advised that they meet these requirements.

This comes amid growing national discussion about the consistency of private hire licensing standards, particularly where councils issue restricted or specialist licences that may operate outside the boundaries of a single authority.

Greenwood said in full: “The Government is responsible for setting the regulatory structure within which 263 licensing authorities in England administer the taxi and private hire vehicle (PHV) licensing regime. Licensing authorities must determine that all taxi and PHV drivers and PHV operators are ‘fit and proper’ to hold a licence but have flexibility on the requirements that must be met to demonstrate this. They must also ensure that vehicles are safe to carry members of the public.

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“The Department for Transport issues guidance to assist licensing authorities to enable the provision of safe and accessible services through proportionate regulation. The Department’s statutory guidance to licensing authorities on exercising their taxi and PHV licensing functions to protect children and vulnerable adults sets out a robust set of safeguarding measures. Licensing authorities must have regard to the guidance and my Department expects them to implement the recommendations unless there is a compelling local reason not to do so. The statutory guidance applies across taxi and PHV licensing, including licences issued on a “restricted” basis.

“As recommended in the statutory guidance, all taxi and PHV licensing authorities in England (including East Cambridgeshire District Council) have advised the Department that for drivers they require the highest level of vetting available, an enhanced Disclosure and Barring Service check and a check of both the children’s and adults’ Barred Lists.”

What are restricted private hire licences and how they differ from standard PHV licences?

Restricted private hire vehicle (PHV) licences are a lesser-known part of the taxi licensing system in England, issued in specific circumstances by local authorities to meet local transport needs. While they share many regulatory similarities with standard private hire licences, there are key differences in how they can be used and the services they permit.

A restricted private hire licence allows a vehicle to carry out limited forms of pre-booked transport, often for defined passenger groups or under specific operating conditions. These licences are sometimes issued to organisations that transport vulnerable passengers, such as schools, charities, or care providers, rather than to general private hire operators.

Unlike standard PHV licences, restricted licences typically come with operational limitations. These can include restrictions on who can be carried, the type of journey that can be made, or the area of operation. For example, a restricted licence might only permit the transport of pupils to and from schools within a certain district.

However, despite these differences, the same fundamental safety and safeguarding obligations apply. Licensing authorities must ensure that both the driver and vehicle are suitable for use, and that any person licensed is “fit and proper” to carry passengers. The Department for Transport’s statutory guidance states that the highest level of vetting must still be carried out, including enhanced Disclosure and Barring Service (DBS) checks and checks against the children’s and adults’ Barred Lists.

Lilian Greenwood confirmed that these same safeguarding standards apply across all forms of taxi and private hire licensing, including restricted licences. She said councils are expected to fully implement the guidance unless there is a “compelling local reason” not to do so.

Supporters of the system say restricted licences help meet specific transport needs in rural or specialised areas where standard private hire operators may not be available. Critics, however, argue that inconsistent interpretation between councils can lead to regulatory gaps, with concerns that differing standards could affect passenger safety or competition between operators.

The Department for Transport continues to monitor how licensing authorities administer both standard and restricted private hire licences. Local authorities retain flexibility to adapt licensing frameworks to suit their areas, but the central requirement to ensure public safety remains the overriding priority.