TfL launches goodwill payment scheme worth up to £500 for taxi and private hire drivers hit by licensing delays
- Perry Richardson
- 46 minutes ago
- 3 min read
Transport for London (TfL) has launched a Goodwill Payment Scheme to compensate existing taxi and private hire vehicle drivers who were adversely affected by licence processing delays linked to new IT systems and a prior cyber security incident.
The scheme follows disruption to licensing operations after the introduction of new licence processing software, compounded by recovery work following an earlier cyber attack. The issues were formally acknowledged by TfL in TPH Notices, which set out the causes of delays and mitigation measures taken.
TfL said most existing taxi and PHV drivers were not affected due to the three-year licence renewal cycle. However, drivers who were required to renew during the affected period experienced delays that in some cases led to short interruptions in their ability to work.
To limit operational impact, TfL implemented several measures including recruiting additional licensing staff and prioritising renewals for existing licensees. Short-term licences were issued to PHV drivers where appropriate, allowing continued operation. Taxi drivers who submitted renewal applications before their existing licences expired were permitted to continue working under existing legislation while their applications were processed.
One-off payments of up to £500 to be issued automatically to eligible taxi and PHV drivers affected by renewal disruption
Despite these steps, TfL acknowledged that some drivers still experienced disruption. The Goodwill Payment Scheme has been introduced as a one-off recognition of that impact for drivers who meet defined eligibility criteria.
Under the scheme, eligible drivers will receive a payment equivalent to the refund value of both their Application Fee and Grant of Licence Fee. This equates to £300 for taxi drivers and £310 for PHV drivers. Drivers who experienced a period of more than seven days without a valid licence will receive an enhanced payment of £500.
Eligibility is limited to existing taxi and PHV drivers whose renewed licences were issued between 1 September 2024 and 31 December 2025. Applicants must have successfully renewed their licence, remained licensed throughout the period, experienced a lapse in licensing, and completed all mandatory driver assessments before their previous licence expired.
TfL said drivers do not need to apply for the payment. All eligible licensees will be identified by TfL and contacted directly, with payments issued automatically by cheque.
The scheme does not apply to first-time licence applicants. TfL stressed that submitting a licence application does not guarantee approval and that there is no fixed timescale for licence decisions. The authority noted that the licensing process is multi-stage, often involves requests for additional information, and includes elements outside TfL’s direct control.
The payments are intended as a goodwill gesture rather than an admission of liability, and TfL has positioned the scheme as a targeted response to a specific period of operational disruption rather than a precedent for future licensing delays.
A TfL spokesperson said: "We’re sorry that some drivers who attempted to renew their licences last year experienced disruption and delays. To recognise the impact that these issues have had on drivers, we are introducing a one-off Goodwill Payment Scheme for those who meet the specific criteria. We will be writing to eligible drivers shortly with further details.
“This follows our work last year to mitigate the impact of these delays, including recruiting additional licensing staff and issuing short-term licences to PHV drivers in appropriate circumstances enabling them to continue to work. We continue to take every possible step to ensure that all drivers who meet licensing requirements are licensed and able to work.”
Steve Garelick, GMB Regional Organiser, said: “The Goodwill Payment Scheme will go some way to addressing the financial impact of the licensing delays on drivers.
“Since our initial engagement on behalf of affected members, we are pleased that TfL has taken this positive step.
“As the largest union for private hire and taxi drivers, we have consistently advocated for our members on this issue. We would like to thank TfL for working constructively with us, first to deal with the delays and now to provide a goodwill payment.
“We are particularly pleased that the scheme recognises the impact on those drivers who faced longer delays.”
