TfL postpones decision on taxi and private hire licence fee rise until July amid current driver licence delay problems

Transport for London (TfL) has postponed plans to increase licensing fees for private hire drivers until at least July. The proposed changes, initially tabled at a Finance Committee meeting in April, form part of a wider review aimed at addressing a £5 million annual deficit in taxi and private hire licensing operations.

TfL’s proposed fee structure would see the private hire driver licence rise from £310 to £343. Assessment fees for key tests including topographical skills, English language, and regulatory understanding would also increase, especially for drivers needing to resit. Vehicle licensing fees, however, would remain frozen at £140.

These changes, if approved, are projected to reduce TfL’s licensing deficit by £1.2 million in 2025/26. Without action, TfL warned that ongoing shortfalls would continue to place pressure on wider transport budgets.

The review also found that many of the rising costs are linked to expanded safety requirements, compliance enforcement, and the rollout of new IT systems for licensing. While these are expected to bring operational benefits in the long term, they have significantly increased short-term administrative costs.

On 24 February, a new software system was introduced to manage taxi and private hire licensing processes. This platform aimed to streamline internal operations and offer an online portal for licensees and applicants, to track applications, upload required materials, and manage assessment bookings.

However, the rollout, combined with ongoing recovery from a previous cyber incident, has led to delays affecting some drivers — particularly those with incomplete applications or first-time applicants. The authority acknowledged the disruption and said it is actively working to resolve the backlog.

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As a temporary measure, short-term three-month PHV licences are being issued to drivers who meet all necessary criteria, including medical and assessment requirements. This stopgap solution aims to ensure continuity of service while the system stabilises and normal licensing timescales are restored.

Due to the delays facing drivers, a final decision on fee adjustments will now be due at the committee’s next meeting on 14 July.

Graham Robinson, TfL’s General Manager Licensing and Regulation, said: “Whilst we focus on resolving these licensing issues, we have deferred the decision on the annual review of Taxi and Private Hire Licence Fees until

the scheduled TfL Finance Committee meeting in July.“