London Assembly member says TfL taxi and private hire driver payments acknowledges failure but still falls short
- Perry Richardson
- 3 minutes ago
- 2 min read
Transport for London (TfL) recently announced a compensation scheme for taxi and private hire vehicle drivers affected by prolonged licensing delays, marking the first formal acceptance by the authority that failures in its licensing system caused drivers financial loss.
The issue has now drawn political attention at City Hall. Elly Baker, Labour’s transport spokesperson on the London Assembly, said the compensation scheme was a significant acknowledgement but warned it did not go far enough.
The move to offer compensation follows more than a year of disruption linked to changes in TfL’s licensing software and the fallout from a cyber attack, which together led to significant backlogs in processing licence renewals and applications. Processing times for some drivers stretched from weeks into months, leaving thousands unable to work and without income.
Under the scheme, eligible drivers will receive a one-off payment intended to recognise the impact of the delays. While the announcement has been seen by trade groups as an admission of fault, concerns remain that the payments offered do not reflect the true scale of losses suffered by drivers who were unable to operate for extended periods.
According to TfL data dated 7 January, 4,006 private hire drivers whose licences have expired are currently having their applications processed. More than 400 of those drivers have already completed all required checks, raising further questions about why licences have yet to be issued.
Baker AM said: “TfL has finally admitted that its licensing system failed private hire drivers and caused financial loss, and it is right that compensation is being offered.
“But I remain concerned that it does not address the loss of earnings some drivers suffer as they were caught in a maze of competing requests for information, long waits for responses and endless email exchanges.
“Taxi and Private Hire drivers play a vital part in London’s transport system. They deserve a licensing service that functions properly and fair compensation when the system fails. Behind every number is somebody unable to work and a family potentially suffering hardship. TfL needs to take more responsibility for these hard-working drivers.”
The comments echo criticism from trade unions, which have argued that the compensation scheme represents only partial redress and does not account for months of lost income, debt accrued during periods without work, or the wider knock-on effects on drivers’ households.
TfL has said the payments are designed to recognise disruption rather than to provide full reimbursement for lost earnings. However, pressure is growing on the authority to demonstrate that systemic issues within its licensing operation have been fully addressed and that similar backlogs will not recur.
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