What could potential compensation look like for taxi and PHV drivers caught up in TfL licensing delays fiasco?
- Perry Richardson
- 5 hours ago
- 2 min read
Questions are growing over whether Transport for London (TfL) will offer financial compensation to taxi and private hire drivers affected by the ongoing licensing delays.
The Mayor of London, Sadiq Khan, has now said that compensation should be considered “on a case-by-case basis” following mounting pressure from Assembly Members and industry representatives. Delays linked to a cyber incident and problems with new licensing software have left some drivers without valid licences for months, preventing them from earning a living.
There is currently no clear compensation scheme in place. However, the Mayor’s comments suggest TfL may be preparing to review individual cases where drivers can show they suffered avoidable financial harm due to administrative failures.
TfL has not yet set out any criteria for who might be eligible. Industry observers believe drivers whose applications were submitted correctly and in good time — but still faced lengthy delays without explanation — could have the strongest claims.
Cases have already been raised publicly, including a driver who renewed his licence five months in advance but remains unable to work. Another driver has been waiting 15 months for a renewal. Others are reportedly in rent arrears, facing court proceedings, or have been made homeless.
The Mayor acknowledged the severity of some of these incidents, saying: “The way TfL has dealt with this issue is not to the standard I expect.” He added that TfL has been instructed to look at these cases individually and assess whether compensation is appropriate.
TfL has so far not confirmed whether compensation will include direct payments, licence fee refunds, or other financial support. With drivers still reporting problems getting answers from TfL, confidence in a timely resolution remains low.
In mid-May, GMB Union criticised TfL’s licensing platform for being unreliable and causing repeated document-upload issues. Drivers uploading correct paperwork found licence statuses flagged invalid shortly after. The union warned that “the system is currently not fit for purpose”.
GMB’s London Region also announced that it would be exploring potential legal action against TfL, aiming to recover lost earnings for drivers. The union said that members have suffered prolonged income loss due to excessive delays.
As TfL continues efforts to reduce the backlog and regain trust, the question of compensation is likely to remain high on the agenda for cabbies and private hire drivers affected. The Mayor’s acknowledgement of the issue marks a shift in tone, but drivers will be looking for more than words in the weeks ahead.
