TfL defends private hire driver licence fees amid concerns over rising costs and application delays

Transport for London (TfL) has defended the level of fees charged to prospective private hire vehicle (PHV) drivers after concerns were raised that applicants are facing significant financial pressure while waiting for licences to be processed.

The issue was highlighted by Green Party London Assembly Member Caroline Russell during a Mayor’s Question Time session, where she relayed concerns from Londoners applying for new PHV driver licences.

One applicant told her they had already spent around £450 on TfL exams and licensing fees, alongside a further £150 for a mandatory medical examination, while still being unable to work due to delays in the application process.

Responding on behalf of Sadiq Khan, TfL said licensing fees are set to reflect the cost of administering London’s taxi and private hire licensing regime. This includes processing applications, carrying out driver assessments and funding regulatory and compliance activity designed to maintain public safety standards.

New applicants face hundreds of pounds in upfront costs before they can begin earning, while TfL says charges reflect the cost of maintaining safety and regulatory standards.

The authority noted that the latest fee increases, approved in February 2026, represented the first revision to taxi and PHV licensing charges since 2017. TfL also pointed out that some of the costs incurred by applicants, including Disclosure and Barring Service (DBS) checks and medical examinations, are determined by external organisations rather than TfL itself.

The response comes against a backdrop of concern within parts of the private hire sector about the increasing costs of entering the trade. New applicants must typically complete background checks, medical assessments, English language requirements and topographical testing before obtaining a licence, with costs accumulating before any income can be earned from driving.

The Mayor of London said: “Transport for London (TfL) sets taxi and private hire licensing fees to ensure they reflect the costs of administering the licensing regime, including application processing, driver assessments and the regulatory and compliance activity required to maintain safety standards. The most recent changes, approved in February 2026, were the first update to these fees since 2017. 

“The fees for taxi and Private Hire Vehicle (PHV) driver licences are set out here and here, along with some indicative costs for DBS checks, medicals, etc. The latter fees are set by external bodies. 

“A paper explaining the fees and setting out the points considered by the TfL Finance Committee are set out here.   

“TfL has experienced some delays in processing renewal and new PHV driver applications over the last year. TfL has taken action to address these delays and is increasing its focus on the service for new applicants. An update on TfL’s licensing process is provided here.”