Two private hire driver unions REJECT TfL £500 goodwill payment over licence delays as an ‘INSULT’
- Perry Richardson
- 11 minutes ago
- 3 min read
Trade unions representing private hire drivers have strongly criticised Transport for London (TfL) following its announcement of a one-off goodwill payment of up to £500 for drivers affected by prolonged licence renewal delays, arguing the measure is an ‘insult’ falling far short of meaningful compensation.
The App Drivers’ and Couriers’ Union (ADCU) said the payment does not reflect the scale of harm caused to drivers who were unable to work for extended periods while waiting for licence renewals to be processed. The union said many drivers experienced severe financial distress, including debt, vehicle repossessions and legal action from leasing firms.
Cristina-Georgiana Ioanitescu, ADCU President, said: “£500 does not even cover one week of repayments on a typical rent-to-buy or PCP vehicle contract. For many drivers who have been unable to work for months because TfL failed to renew their licences on time, this amount is meaningless.”
ADCU said it has been lobbying TfL since September 2024, when a cyber attack led to chronic disruption within the licensing system. The union said it repeatedly called for the introduction of temporary licences from March 2025, once the scale of the impact on drivers became clear, but claims those warnings were initially ignored.
ADCU and IWGB say compensation offer fails to reflect financial and personal damage suffered by private hire drivers
The union argues that the underlying problem has been exacerbated by overlicensing and that the goodwill payment represents only a short-term response, with further licensing pressures expected. According to ADCU, TfL only acted after the union raised the issue publicly.
Ioanitescu said: “From the start, we warned that drivers were being pushed into financial crisis through no fault of their own. We repeatedly called for urgent action, including temporary licences and fair compensation. Only after ADCU went to the media demanding temporary licences did TfL finally agree to act. Every other attempt to secure meaningful financial redress for drivers, with both TfL and the UK Department for Transport, was rebuffed.”
She added: “£500 is a token gesture that shows just how disconnected TfL is from the reality drivers have been living through. This doesn’t touch the sides of the financial and emotional damage caused. Drivers have lost tens of thousands of pounds in income, been pushed into debt, had their cars taken away. ADCU is supporting numerous members who have been dragged through the courts by car leasing companies, and seen their lives fall apart. Calling this compensation is an insult.”
ADCU said it is calling on TfL to enter urgent negotiations to establish a compensation scheme that reflects actual losses incurred by drivers and addresses the longer-term damage to livelihoods caused by the delays.
“Our members deserve justice, not charity. £500 is not compensation. It is an attempt to minimise responsibility for a failure that has devastated thousands of working people,” Ioanitescu said.
Criticism has also come from the Independent Workers’ Union of Great Britain, which described TfL’s offer as wholly inadequate. In a separate statement, the IWGB said: “If Transport for London believes its announcement of a £500 ‘Goodwill’ payment will be met with anything other than contempt by the drivers whose lives were torn apart by TfL’s prolonged incompetence, it is profoundly mistaken.”
The IWGB added: “Two facts must be made absolutely clear. First, £500 does not begin to reflect the scale of the harm suffered. Drivers lost tens of thousands of pounds in income, were pushed into crippling debt, and in many cases lost their vehicles, their homes, their families, and their mental health. This payment is not compensation; it is an insult.
“Second, this crisis was not the result of forces beyond TfL’s control. It was the direct consequence of repeated decisions made by TfL that exacerbated and prolonged the damage, despite clear warnings and mounting evidence of harm. That pattern of conduct amounts to gross negligence.”
The IWGB said it is exploring a potential legal claim against TfL with law firm Leigh Day and is gathering evidence from drivers affected by the delays to support possible proceedings. The union said previous concessions from TfL had only followed sustained legal and industrial pressure.
TfL has said the goodwill payments are intended as a one-off recognition of disruption rather than compensation for loss of earnings. Driver groups, however, argue the response underlines wider tensions between regulators and the private hire workforce at a time of rising costs and continued licensing pressures.
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