“THE TRADE IS RETIRING”: London taxi retirement timebomb as six in ten cabbies are now aged 56 or over

A warning has been echoed for years by drivers watching ranks thin out and familiar faces retire, but the available official data now gives the concern much greater weight. The traditional taxi workforce is heavily concentrated in older age groups, while the number of younger people choosing the occupation remains exceptionally low.

The latest Department for Transport (DfT) statistics show that England had 417,300 taxi and private hire vehicle driver licences on issue at 1 April 2026, 9% more than in 2024. On the surface, that appears to describe a growing labour supply. Scratch beneath the surface and it does not. That national increase has been driven by private hire rather than the traditional taxi sector.

Taxi-only driver licences fell by 11% between 2024 and 2026 to approximately 30,400. PHV-only licences rose by 13% to 296,800, while the number of licences allowing drivers to work in both sectors increased by 9% to 84,700. Over the same period, England’s licensed taxi fleet contracted by 7% to 52,300 vehicles, while the PHV fleet expanded by 13% to 290,000. The figures describe two markets moving in different directions.

The DfT’s 2026 release does not include a new national driver-age breakdown. The latest national age analysis published by the department remains its 2024 measure, which placed the average taxi or PHV driver at 48. Only 22% were under 40, while 18% were aged 60 or above. The DfT also reported a long-term shift towards fewer young drivers and a greater proportion aged over 40.

London’s January 2026 licensing records provide a more current and detailed picture, and they show that the demographic risk is concentrated overwhelmingly in the taxi trade rather than private hire. Transport for London (TfL) recorded 16,172 licensed taxi drivers. Just 64 were aged between 21 and 30, equivalent to 0.4% of the total. Only 1,033, or 6.4%, were aged 40 or below.

At the other end of the distribution, 9,568 London taxi drivers were aged 56 or older. That is 59.2% of the licensed workforce. More than 5,800 were already aged 61 or above, while the largest single group was the 56 to 60 bracket, containing 3,729 drivers. Nearly one in four London taxi drivers therefore sits in an age group that will move beyond 60 during the next five years.

That does not mean every one of those drivers will retire within five years. Taxi drivers frequently remain in the industry beyond the conventional retirement age, either through choice or financial necessity. However, it does mean the trade is carrying an unusually large cohort that could reduce its hours, surrender its licence or leave unexpectedly because of ill health. There is no comparably large younger cohort moving through behind it.

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Private hire has a healthier, though still mature, profile. TfL recorded 104,776 PHV drivers in January 2026, of whom 31,572, or 30.1%, were aged 40 or below. A total of 5,912 were aged between 21 and 30, representing 5.6%. Its largest groups were drivers aged 41 to 45 and 46 to 50, together accounting for almost 36,400 licences. About 19.9% of PHV drivers were 56 or older, compared with more than 59% of taxi drivers.

Why does that contrast matter? Because PHV growth cannot automatically replace the functions lost when taxi capacity disappears. Taxis can be hailed in the street and hired from ranks, and a significant share of the fleet is wheelchair accessible. According to the DfT, 54% of English taxis were wheelchair accessible in 2026, compared with only 2% of PHVs. A fall in taxi-driver numbers therefore carries consequences for rank availability, accessible transport, late-night coverage and passengers unable or unwilling to use app-based booking services.

Why are younger workers staying away?

First up it must be noted that London has seen a recent uptick in the numbers applying to become a taxi driver. It takes time to get through the process so whether we see that number offset the number leaving the industry is yet to be seen.

There does however remain a few sticking points putting off even more required applicants joining the ranks. Taxi driving usually requires an applicant to absorb costs before earning anything. These may include the driver application, an enhanced DBS check, a Group 2 medical examination, knowledge or competency testing, safeguarding and disability training, driving assessments and vehicle-related expenditure.

Requirements vary between authorities, leaving applicants to navigate different processes, prices and timescales depending on where they apply.

The vehicle is the largest barrier. A younger entrant who wants to own a taxi may need access to a significant cash deposit, with financing costs, insurance, maintenance, licensing and depreciation all landing before a reliable income has been established. Renting lowers the initial capital requirement but converts it into a high weekly fixed cost at around £400 per week. Younger motorists also tend to face more expensive hire-and-reward insurance because they have shorter driving histories and less commercial experience.

London adds another hurdle. TfL says mastering the Knowledge of London typically takes three to four years. Current taxi licensing charges include a £138 application fee, a £205 grant fee, £225 for the All London written examination and a £425 one-off appearance charge. DBS, medical and driving-test costs sit outside much of that total.

Age rules can create an immediate barrier. TfL requires a PHV applicant to be at least 21 and to have held a full driving licence for at least three years. That effectively excludes most school and college leavers from moving directly into the occupation. By the time they become eligible, many will already have entered another career.

Working conditions are another factor. Taxi and PHV driving often demands evenings, nights, weekends and long periods sitting in traffic or waiting for work. Income is seasonal, operating costs can move sharply, and self-employment transfers much of the financial risk to the driver. Some younger drivers do not want that level of responsibility whilst just entering the world of work.