Inflation and rising costs could see London taxi fares rise by 4% in April 2026
- Perry Richardson
- Oct 6
- 1 min read
London’s taxi fares could be set for a 4.01% rise from April 2026, according to early calculations ahead of this year’s Transport for London (TfL) annual consultation.
Although the formal review and consultation will not take place until later this year, TfL regularly monitors changes in the cost of running a taxi to ensure any adjustments reflect real-world conditions. The process uses a ‘cost basket’ of key expenses such as fuel, insurance, vehicle prices and maintenance, alongside changes in national average earnings.
The latest data suggests that drivers’ operating costs have risen by 0.91% and national earnings by 3.10%, producing a combined potential increase of 4.01% for next year. The final figure will be confirmed following consultation with driver representatives and trade bodies.
In April 2025, taxi fares in London rose by 5.6% after TfL approved an increase designed to help drivers meet rising business expenses and inflation pressures. That rise was broadly welcomed across the trade, following a period of cost growth linked to higher vehicle prices, insurance premiums and energy costs.
Maintaining fares in line with inflation is considered vital for keeping the profession sustainable. Drivers face significant financial outlays, particularly those operating newer zero-emission capable taxis. Regular, evidence-based fare reviews aim to ensure the tariff remains fair for both drivers and passengers, supporting service reliability and driver retention.
TfL’s tariff consultation is expected later this year, with any approved adjustment applied in April 2026.
