Last Updated on 02/01/2024 by Emma Purcell
Transport for London (TfL) would like you to have your say on proposed changes to taxi fares in the capital city. Taxis are a vital form of transport for disabled people, particularly those with limited mobility, sight loss and cognitive impairments, who may find accessing public transport more difficult. This is why TfL would like to hear the thoughts of disabled passengers on these proposed changes.
An overview of the proposed changes to taxi fares
Transport for London reviews taxi (black cab) fares each year to ensure using a taxi is a good value option for customers and that taxi drivers receive enough money for the work they do. The fares were last increased in 2023.
This year we have examined several options for how we can make sure that drivers and customers keep receiving a good service and income. We are proposing increases for the ‘tariffs’ for shorter journeys (tariff 1, 2 and 3 depending on the time of day of the journey), and making the ‘tariff’ for longer journeys (tariff 4) higher.
We are also proposing increases to the additional charge paid when booking a taxi by phone, online or by mobile app and the fixed fare taxi-sharing service for the Wimbledon Tennis Championships. We are proposing a decrease in the additional charge paid for taking a taxi to and from Heathrow Airport.
Why is TfL proposing these changes to taxi fares?
Our drivers must be able to cover their operating costs and make a living from their work. This ensures that working as a taxi driver remains an attractive and viable choice of job/career. This is important as taxis provide an important service for customers, including those who for mobility or other reasons, are less able to use public transport.
They also provide an option to help people avoid using private cars, which can help with improving congestion and air quality. So people must continue to apply to become taxi drivers and existing drivers can remain working as taxi drivers to ensure there is a good supply of available taxis on the streets for people who need them.
When reviewing taxi fares we need to take into account the costs drivers incur for running their taxi and how their income compares to that of other workers. Drivers need to earn enough from fares to cover these costs and make a satisfactory income from the work they do.
Our review has shown that drivers’ operating costs have increased due to buying taxi vehicles becoming more expensive and the costs of insurance and electric vehicle charging. This has led to an increase of 5.2% in operating costs.
We also considered how much people earn in general and how taxi drivers’ income can reflect this fairly. We do this by looking at changes in national average earnings. This year, this has increased by 3.7%.
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What is TfL proposing for shorter journeys by taxi (Tariffs 1, 2 and 3)
We want to help our drivers cover the costs of their jobs and be able to afford a good quality of life.
- Tariff 1 means to journeys of less than six miles made during Monday to Friday day times.
- Tariff 2 means journeys of less than six miles made during weekday evenings and daytimes and evenings at the weekends
- Tariff 3 means journeys made during the night
We would like to hear your views on whether we should consider increased driver costs or increased national earnings when deciding if and by how much we increase our taxi fares, or if you think we should not change the fares.
View details of the Consultation Options, which shows what journeys might cost if these proposals were implemented compared to the current fares.
What is TfL proposing for longer journeys by taxi (Tariff 4)
Tariff 4 relates to any journey, at any time of day, any day of the week, which is longer than six miles. Once six miles is reached the tariff will change from 1, 2 or 3 to tariff 4 automatically.
We have not increased tariff 4 for four years, and the rate for tariff four is now lower than for tariffs 2 and 3. There is concern this makes longer trips less advantageous to drivers as the income they receive for the work is lower, possibly resulting in fewer taxis being available for longer trips and longer waits for customers needing to make longer journeys.
We are proposing making Tariff 4 the same as Tarif 2 (the rate of evening and weekend journeys). This means that the cost of trips which are longer than six miles would increase for journeys made during the day times (Tariff 1) would stay the same for journeys made during evenings and weekends and decrease for journeys made during the night.
Taxi drivers can agree on a fee with passengers for journeys which begin in London but end up outside London. This can be higher than what would be calculated on the taximeter.
Other proposed changes – pre-booking charge, Heathrow extra charges and Wimbledon Tennis Championship fixed fares
Pre-booking charge
There is an additional charge for taxi journeys which are booked by phone, online or via an app, rather than by hailing a taxi in the street or using a taxi rank. This is currently £2.00. This is to cover the administration fees for using a booking service.
We would like to hear your views on whether you think this fee should be increased, and if so by how much.
Heathrow extra charge
Taxi drivers who use taxi ranks at Heathrow Airport have to use a ‘taxi feeder park’ for which the airport charges a fee. A charge is therefore added to the fare to help drivers pay for this.
Until recently Heathrow charged up to £7.20 to use the feeder area, and the additional charge was, and is currently £3.60. This cost to drivers had been increased during 2021 due to a lack of demand caused by the coronavirus pandemic.
However, Heathrow has now reduced the costs of using the feeder park to £3.80. We propose reducing the additional charge for customers to £2.00.
Wimbledon Tennis Championships ride-sharing fixed fare
A fixed fare scheme for people wishing to share a taxi between the Wimbledon tennis club and Wimbledon and Southfields stations operates during the annual championship fortnight.
The current cost is £2.50 per passenger, and customers have the option of sharing a taxi with friends or sharing with people they may not know. This can result in a shorter wait for a taxi to or from the station.
During the most recent Wimbledon championship, it was reported that there was a lack of taxis available, especially during the evening peak for customers travelling from the tennis club to the stations.
We are proposing an increase to the fixed fare per passenger from £2.50 to £3.00 and would like your views. This could be in both directions or in the evening only.
Information for Taxicard members
The Taxicard scheme provides a set number of subsidised taxi journeys – usually made by black cabs – for Londoners who are mobility or visually impaired. It is managed by London Councils and funded by TfL and the London boroughs.
Taxicard members pay a small contribution to the cost of the trip and the remainder – up to a maximum value – is subsidised. Members are allowed a fixed number of journeys per year which they can make on their Taxicard.
These proposals could affect you if you are a Taxicard member as the costs of some journeys may increase. Depending on how you use the scheme, this may mean not being able to have as many trips by taxi using your card.
We have carried out an Equality Impact Assessment (Link) to ensure we are carefully considering the needs of groups with protected characteristics. We are keen to hear from you if you feel you will be impacted by these proposals.
Other considerations
As well as our EQIA we also asses other factors and whether our proposals will have a positive or negative effect. These include economic impacts (such as whether changing fares would have a positive or negative impact on drivers, or whether changes would make travelling by taxi more or less attractive to the public) and environmental impacts ( for example whether our proposals would have a positive or negative impact on how travelling by taxi affects emissions)
Have your say on the proposed taxi fare changes
You can have your say on our proposals in the following ways:
Complete our online survey – this should take no more than a few minutes. You will need to register with your email address to complete the survey – your details will be kept securely.
If you prefer to respond in writing you can do so by:
Emailing haveyoursay@tfl.gov.uk
Writing to FREEPOST, TfL Have Your Say (no stamp required)
If you have any questions about the proposals or would like to request printed materials or materials in an alternative format please email haveyoursay@tfl.gov.uk or telephone 020 3045 6037 and leave a message and a member of the consultation team will call you back.
Our consultation is open from 9th October 2023 until 20th November 2023. Your feedback will be used to inform decisions which will be made by the TfL Finance Committee in the spring of 2024 and any changes will be made in April 2024.
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