MPs raise Uber driver pay and taxi licensing reform following King’s Speech debate
- Perry Richardson
- 3 minutes ago
- 2 min read
Taxi and private hire licensing reform returned to the Commons agenda this week as MPs used the King’s Speech debate to raise concerns over outdated laws, out-of-area working and driver earnings.
Daniel Zeichner, Labour MP for Cambridge, welcomed the draft taxi licensing Bill, saying he hoped it would finally bring progress on modernising rules governing taxis and private hire vehicles.
Zeichner told MPs he had spent “many hours” in Parliament discussing the taxi and private hire trade, adding that current legislation had become “woefully out of date as the world has moved on”.
The comments came during a wider Commons debate on 13 May 2026, following the Government’s legislative programme. The draft Bill is expected to be closely watched by licensing authorities, operators, app-based platforms and drivers.
Daniel Zeichner said taxi and private hire legislation was “woefully out of date”, while Iqbal Mohamed warned that some Uber-linked commission models were squeezing drivers.
Iqbal Mohamed, Independent MP for Dewsbury and Batley, intervened to raise concerns over private hire driver pay and platform commission levels. He said drivers he speaks to had reported that, since Uber’s employment-related settlement, commission rates had moved from a fixed level to a more dynamic model, with some drivers receiving less than half the fare paid by passengers.
Mohamed asked whether the Government should do more to prevent worker exploitation and protect drivers from conditions he described as close to modern slavery.
Mohamed said: “Every time I come to Parliament, I take a taxi from my home to the station. I speak to many private hire drivers, as I am sure many Members across the House do. In the past two years, since the settlement with Uber to class drivers as employees and get some benefits, the commission rates have ballooned. Before, they were fixed at nearly 25%; now, they are dynamic.
“Drivers sometimes get less than half the fare that customers pay. Does the hon. Member agree that the Government should do more to prevent any exploitation of workers and protect them from modern slavery conditions?”
Zeichner said the issue was complicated and pointed to legal cases that had changed the structure of the sector. He said out-of-area working had “particularly troubled” him over the years and added that the squeeze on drivers had been “harsh”.
For the trade, the exchange points to two likely pressure points as the draft taxi licensing Bill develops: local enforcement powers and the economic model underpinning app-based PHV work.
Out-of-area working has long been a concern for some councils and taxi groups, who argue that drivers licensed in one area can work extensively in another, weakening local oversight. Previous reform debates have also called for better information-sharing between authorities and stronger national standards.
For PHV operators and app platforms, the debate suggests Parliament may look beyond passenger safety and licensing databases, and towards driver earnings, commission structures and employment protections.
