Mayor of London defends Knowledge funding model as taxi training costs remain with applicants

Image credit: LEVC

The Mayor of London has defended the long-standing funding model for the Knowledge of London, arguing that applicants should continue to bear the cost of qualifying as a licensed taxi driver rather than receiving support through the wider taxi and private hire licensing system.

The issue was raised by Conservative London Assembly Member Thomas Turrell as part of May’s Mayor’s Question Time. Turrell asked whether the Mayor agreed that the Knowledge of London is effectively the professional training system responsible for producing the globally recognised standard of London taxi drivers and, if so, why the cost of maintaining that system falls largely on those studying it.

Responding, Sadiq Khan described the Knowledge assessment process as a key factor behind the reputation of London’s black cab drivers. He said: “The Knowledge of London assessment process underpins the high standards of London taxi drivers and is the key reason for the high esteem in which they are held around the world.”

However, Khan said Transport for London (TfL) must operate within existing legislation and Department for Transport best practice guidance governing taxi and private hire licensing. He noted that licence fees can only be used to cover the costs of the relevant licensing regime, including compliance and enforcement activity, and that taxi and private hire licensing systems must remain financially separate.

Sadiq Khan praised the Knowledge of London as the foundation of the capital’s world-renowned taxi trade but said licensing fees cannot be used to subsidise entry into the profession.

The Mayor added that fees paid by licensed operators are designed to cover the costs of regulation rather than subsidise individuals entering the profession. While TfL sets and administers the standards required to become a licensed taxi driver, he said applicants remain responsible for meeting their own application and assessment costs.

The comments come as TfL prepares to introduce increases to taxi and private hire driver licensing fees next month. According to Khan, the changes represent the first rise in driver licence fees since 2017. He said additional pressures linked to licensing, compliance and enforcement activity had made the increases necessary. A separate increase to Knowledge of London assessment fees was also introduced in March as part of a broader review of taxi and private hire licensing income and expenditure.

Get FREE WhatsApp news updates here

Despite ongoing concerns within parts of the taxi trade about the cost and length of completing the Knowledge, Khan pointed to signs of renewed interest in the profession. He said TfL continues to improve the Knowledge process and promote taxi driving as a career through commitments contained within its Taxi and Private Hire Action Plan.

The Mayor also highlighted growth in new licence applications, stating that the number of people applying for a new taxi driver licence last year was the highest seen in a decade. The figure may provide some reassurance to industry stakeholders concerned about driver recruitment and the long-term sustainability of London’s licensed taxi workforce.

The Mayor of London said: “The Knowledge of London assessment process underpins the high standards of London taxi drivers and is the key reason for the high esteem in which they are held around the world.  

“Transport for London (TfL) is mindful of its obligations under the relevant legislation for taxi and private hire licensing as well as the Department for Transport (DfT) Best Practice Guidance, that make clear that licence fees must be used only to cover the costs of the relevant licensing regime, including compliance and enforcement. Taxi and private hire are separate regulatory systems and their fees should remain entirely separate. 

“More broadly, the costs associated with administering and enforcing the licensing regime are met through fees paid by those who are licensed to operate within it. These fees are set to cover the cost of regulation, compliance and enforcement activities, rather than to subsidise entry into the profession. While TfL is responsible for setting and administering the required standard, individual applicants are responsible for funding their application and associated costs. 

“The increases to taxi and PHV driver licence fees, that take effect next month, are the first increase to these fees since 2017 and since this time, regulation and delivery have evolved, driving additional cost pressures across licensing, compliance and enforcement necessitating the increases in fee .  In addition, there has already been a small increase to Knowledge of London assessment fees, which came into force in March. These changes form part of a wider review of taxi and private hire licensing income and expenditure, as set out in TfL’s Finance Committee papers.

“Further to commitments in the Taxi and Private Hire Action Plan, TfL continues to make improvements to the Knowledge of London process and to promote taxi driving as a career. I am pleased to note that the number of applicants for a new taxi driver licence was, last year, the highest number for a decade.”