London black cab minimum fares set for increase alongside overall tariff prices to cover growing costs
- Perry Richardson
- 4 minutes ago
- 3 min read
Transport for London’s (TfL) Finance Committee has recommended increasing London black cab fares from April 2026, including a 20 pence rise in the minimum fare to £4.40 and a 2.88 per cent uplift in Tariffs 1, 2 and 3.
The changes, set out in a paper to be considered on 25 February 2026, also include introducing a £6.00 drop-off extra charge for journeys terminating at London City Airport (LCY).
If approved, the revised fares would come into effect on Saturday 25 April 2026.
Under the recommendations, the minimum fare would increase from £4.20 to £4.40. Tariffs 1, 2 and 3 would rise by 2.88 percent, while Tariff 4 would remain aligned with Tariff 2 rates, as established in previous reviews . TfL said the approach spreads the total 4.01 percent Cost Index increase across both the minimum fare and the tariffs, resulting in a lower percentage uplift to the distance and time rates than applying the full index solely to tariffs .
TfL backs black cab fare rise and approves £6 London City Airport drop-off charge
The 2025/26 Cost Index shows a 0.91 percent rise in taxi drivers’ operating costs and a 3.10 percent increase in average national earnings, giving a combined figure of 4.01 per cent. TfL said the proposal reflects both elements while seeking to balance driver income sustainability with passenger affordability.
The committee paper highlights ongoing pressure on driver numbers. The number of licensed taxi drivers has been falling since 2013/14 and is now at its lowest level since 1975, while applications to become a licensed taxi driver remain significantly below pre-2015 levels. TfL said increasing fares in line with operating costs and earnings data may help retain existing drivers and encourage new entrants, reducing risks to service availability and passenger wait times.
The public consultation on the fare proposals ran from 3 November to 14 December 2025 and received 838 responses. Of three options presented, 59 percent of respondents ranked an alternative proposal as their first choice, which would have applied the full 4.01 percent increase to tariffs without raising the minimum fare. The recommended option was ranked first by 19 percent but second by 70 percent of respondents.
Stakeholder responses reflected tensions between affordability and supply. London TravelWatch acknowledged cost pressures on drivers but warned that fare increases could disproportionately affect disabled and older passengers. Taxi trade representatives argued that failure to apply the full Cost Index would effectively require drivers to absorb rising costs, potentially accelerating exits from the trade.
Alongside the general fare uplift, the committee is recommending allowing drivers to add a £6.00 LCY drop-off charge to the meter when setting down passengers in the airport’s designated drop-off area. LCY has introduced a drop-off fee for all vehicles and will begin charging London taxis from April 2026, irrespective of TfL’s decision.
TfL is not recommending that the airport’s taxi rank access fee, which will rise from £2.00 to £3.00, be passed on to passengers. The paper states that TfL does not wish to encourage charges for using taxi ranks to be added to fares and notes that drivers can choose whether to work the LCY rank.
The report acknowledges equality impacts, particularly on disabled passengers and Taxicard users, who may face higher costs or reduced travel frequency as fares rise. At the same time, TfL states that not increasing fares could exacerbate driver attrition, with potential knock-on effects for accessibility and service reliability.
The Finance Committee is being asked to approve the package of measures, with implementation targeted for late April 2026.
