A second London taxi industry group survey has revealed overwhelming support to accept the full 11.6% tariff increase proposed for Spring 2023.
Transport for London (TFL) are currently reviewing options for the next taxi fares and tariffs consultation, which is due to commence in late October/early November 2022.
As part of the review TfL have updated the Cost Index for this year’s taxi proposed fares and tariffs, and shows the changes in taxi drivers’ operating costs and average national earnings, and the total Cost Index figure.
The Cost Index includes costs for fuel (diesel, petrol, electricity). In a TfL Finance Committee report the overall increase in costs was said to be ‘very high this year’, due to increases in fuel and electricity/charging costs.
The previous Cost Index increase was 9.95%, but was a combination of three years of Cost Index calculations.
The total Cost Index calculation for this year is 11.64%. This includes the increase in drivers' operating costs of 7.61%, of which 5.74% is due to the increase in fuel costs and the increase in average national earnings of 4.02%.
The United Cabbies Group (UCG) surveyed their members asking whether they supported the proposal to accept the full 11.6% tariff increase in April 2023. A huge 86.58% of UCG members supported the proposal.
Drivers said it would equate to a ‘pay cut’ if they did not accept the full amount and that it would impact their ability to purchase new electric vehicles if the industry didn’t accept the full amount.
The Licensed Taxi Drivers’ Association (LTDA) conducted a similar survey with their members to see if it would be appropriate to accept the proposed tariff increase in the current climate.
51% of respondents felt that the full increase should not be applied to fares next April, whereas 49% believed the whole increase should be applied.
The 51% of respondents who stated that they do not believe that the full 11.64% increase should be applied were then asked what level of increase, if any, they believed should be applied next April.
Over three quarters of these drivers agreed there should be an increase just at a lower level.